SBIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | SBIN | Market Cap | 8,75,940 Cr. | Current Price | 949 ₹ | High / Low | 1,235 ₹ |
| Stock P/E | 11.4 | Book Value | 590 ₹ | Dividend Yield | 1.83 % | ROCE | 6.02 % |
| ROE | 15.5 % | Face Value | 1.00 ₹ | DMA 50 | 1,038 ₹ | DMA 200 | 990 ₹ |
| Chg in FII Hold | 1.07 % | Chg in DII Hold | -0.93 % | PAT Qtr | 19,684 Cr. | PAT Prev Qtr | 21,028 Cr. |
| RSI | 31.9 | MACD | -34.9 | Volume | 84,39,543 | Avg Vol 1Wk | 1,40,41,368 |
| Low price | 782 ₹ | High price | 1,235 ₹ | PEG Ratio | 0.76 | Debt to equity | 12.3 |
| 52w Index | 37.0 % | Qtr Profit Var | 5.58 % | EPS | 86.7 ₹ | Industry PE | 7.84 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹19,684 Cr. vs ₹21,028 Cr. previous quarter, showing a slight decline but still robust.
- Margins: ROE at 15.5% is strong, while ROCE at 6.02% indicates modest efficiency.
- Debt: Debt-to-equity ratio of 12.3 reflects high leverage, typical for banks but a risk factor.
- Cash Flow: Stable earnings supported by strong deposit base and diversified operations.
💹 Valuation Indicators
- P/E Ratio: 11.4 vs Industry PE of 7.84 — trades at a premium, justified by stronger earnings.
- P/B Ratio: Price ₹949 vs Book Value ₹590 → ~1.6x, reasonable for a leading bank.
- PEG Ratio: 0.76 suggests undervaluation relative to growth.
- Intrinsic Value: Appears undervalued compared to long-term growth potential.
🏦 Business Model & Advantage
SBI is India’s largest public sector bank with diversified services across retail, corporate, and digital banking. Its scale, government support, and extensive branch network provide a strong competitive moat.
📈 Technicals & Entry Zone
- RSI at 31.9 indicates oversold territory.
- MACD negative (-34.9) suggests short-term weakness.
- Entry Zone: ₹820–₹880 range looks attractive for accumulation.
- Long-term Holding: Strong fundamentals and leadership support a buy-and-hold approach.
✅ Positive
- Strong ROE at 15.5%.
- Undervalued PEG ratio (0.76).
- Government backing ensures stability.
⚠️ Limitation
- High debt-to-equity ratio (12.3).
- ROCE relatively low at 6.02%.
- Quarterly profit decline.
📰 Company Negative News
- Quarterly profit dipped from ₹21,028 Cr. to ₹19,684 Cr.
- Decline in DII holdings (-0.93%).
🌟 Company Positive News
- FII holdings increased (+1.07%).
- Strong dividend yield of 1.83%.
- Consistent market leadership in Indian banking.
🏭 Industry
Banking sector PE at 7.84 indicates SBI trades at a premium, justified by its scale and profitability. The industry is undergoing digital transformation, where SBI is actively investing.
🔎 Conclusion
SBI remains a fundamentally strong stock with attractive valuations and long-term growth prospects. Despite short-term profit decline and high leverage, its strong ROE, government backing, and undervaluation make it a solid candidate for long-term investors. Entry around ₹820–₹880 offers a favorable risk-reward opportunity.
If you’d like, I can also prepare a peer comparison or a sector outlook to complement this report.