SBIN - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.3

🏦 Fundamental Analysis

Strengths

ROE (17.2%): Strong return on equity for a public sector bank.

PEG Ratio (0.32): Indicates undervaluation relative to earnings growth.

P/E (9.51) vs Industry P/E (7.49): Reasonably valued considering growth.

EPS (₹86.9): Robust earnings per share.

Dividend Yield (1.99%): Attractive for income-focused investors.

PAT Qtr: ₹19,600 Cr: Massive quarterly profits, consistent with prior quarter.

Concerns

ROCE (6.47%): Low, typical for banks due to capital-heavy structure.

Debt-to-Equity (12.4): High, but normal for banking institutions.

Quarterly Profit Variation (-8.34%): Slight dip in profitability.

FII Holding Decline (-0.61%): Mild institutional outflow.

📉 Technical & Trend Analysis

RSI (42.5): Neutral, not oversold.

MACD (0.54): Mild bullish crossover.

Price below 50 DMA (₹805) but above 200 DMA (₹788): Consolidation phase.

Volume: Slightly below weekly average, indicating reduced momentum.

💰 Ideal Entry Price Zone

Accumulation Zone: ₹740–₹770

This range offers a margin of safety and aligns with support near 200 DMA.

Below ₹740, consider aggressive accumulation if fundamentals remain intact.

🧭 Exit Strategy / Holding Period

If you already hold SBIN

Hold for 5–10 years if you seek long-term compounding from India’s largest bank.

Exit partially if price approaches ₹950–₹990 and valuation becomes stretched.

Reassess if ROE drops below 14% or asset quality deteriorates.

Long-Term Outlook

Price Target by 2030: ₹2,430

1

Intrinsic Value Estimate: ₹986.32 (currently undervalued by ~17%)

2

Analyst Consensus Target: ₹952.25

3

Would you like a dividend reinvestment strategy or a comparison with ICICI Bank and HDFC Bank for portfolio balancing?

1

shareprice-target.com

2

bing.com

3

trendlyne.com

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