Buy or sell: Is it wise to accumulate SBI, HDFC Bank shares in FY25? — explained
Buy or sell stocks: Despite a strong rally in PSU bank stocks, shares of State Bank of India (SBI) remained a laggard. However, the SBI share price has delivered strong upside movement in the last two months. SBI share price has risen from around ₹605 to ₹753 apiece level, logging around 25 percent rise in this time.
However, Nifty 50 and Nifty Bank major HDFC Bank shares continue to trade sideways to negative at this time. HDFC Bank share price has come close to the historical low of its PE multiple as well. Interestingly, the Nifty Bank index has risen nearly 5 percent in the last two months.
So, an investor looking for a value pick available at a discounted price might find it hard to decide whether they should look at SBI and HDFC Bank shares or not. Speaking on the outlook of SBI and HDFC Bank shares, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 said, "SBI share price has demonstrated strong performance in recent times and is presently trading less than 8 percent below its all-time high made earlier this month. Conversely, HDFC Bank share price, which reached a peak of approximately ₹1757 in July last year has experienced a significant downturn following q3 results and is trading just 5 percent higher than its 52-week low made in February this year.
Furthermore, in terms of the PE ratio, the SBI share price currently trades at a trailing PE of 10, while HDFC Bank trades at a PE of 18.60. Notably, HDFC Bank's PE ratio is close to its historically low levels, which was at 16.15 made in March 2020." On fundamental outlook of SBI shares, Shreyansh V Shah, Research Analyst at StoxBox said, "Though in the December quarter, SBI reported a 35% percent fall in its standalone net profit at Rs. 9,164 crores,
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