Buy State Bank of India, target price Rs 750: HDFC Securities

economictimes.indiatimes.com:

State Bank of India with a target price of Rs 750. The current market price of State Bank of India is Rs 570.65.State Bank of India, incorporated in the year 1955, is a banking company (having a market cap of Rs 509149.11 Crore).

State Bank of India key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2023.FinancialsFor the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 132332.78 Crore, down -3.30 % from last quarter Total Income of Rs 136852.39 Crore and up 40.00 % from last year same quarter Total Income of Rs 94524.30 Crore. The bank has reported net profit after tax of Rs 18536.80 Crore in latest quarter.Investment RationaleThe brokerage tweaks its estimates for a lower credit cost, partly offset by softer other income and watch out for sustainability of cost-to-income trajectory; maintain BUY with a SOTP[1]based target price of INR750 (core bank at 1.3x Mar-25 ABVPS).Promoter/FII Holdings Promoters held 57.47 per cent stake in the company as of 30-Jun-2023, while FIIs owned 10.36 per cent, DIIs 24.8 per cent.