State Bank of India (SBIN) Earnings: 4Q Net Income Surpasses Estimates with Jump of 24% Year Over Year

State Bank Of India on Smartkarma

Analyst coverage of State Bank of India (SBIN) on Smartkarma by Raj S, CA, CFA showcases a positive outlook on the company’s performance. In the research report titled “State Bank of India (SBIN) – 3Q24 Update: Short-Term Pressure Is an Opportunity to Accumulate,” the analysis highlights one-off impacts affecting short-term results, presenting an opportunity for long-term accumulation. With medium-term Return on Equity (ROE) forecasts remaining intact and potential for re-rating in the near term, the report suggests a cheap Price-to-Book Value (P/BV) at 1.3x FY25e, signaling a possible ~40% upside for SBIN. The analyst reiterates the view to consider adding to positions.

In another report, “State Bank of India (SBIN IN): Initiation – Convergence with Private Peers, Poised for Re-Rating,” Raj S, CA, CFA highlights SBIN as the top-performing PSU bank in India with significant potential for substantial re-rating in the short run. The analysis points out the convergence with private peers in fundamental metrics despite undervaluation, indicating room for growth. With strong asset quality, consistent ROA of approximately 1.2%, and positive fee income, SBIN is seen as undervalued compared to private peers, suggesting a potential re-rating towards a P/BV of ~1.6x FY25e and a ~35% upside in the near term.

A look at State Bank Of India Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

State Bank of India, a prominent player in the banking industry, is positioned favorably for the long term based on its Smartkarma Smart Scores. With a high Dividend score of 5, investors can expect attractive returns through regular dividend payouts. Additionally, the Growth score of 4 indicates strong potential for expansion and increased profitability in the future. Coupled with a solid Value score of 4, the company’s shares may be undervalued, presenting a good investment opportunity. Despite a lower Resilience score of 2, the Momentum score of 5 suggests that the company is experiencing positive market sentiment and upward trend possibilities.

State Bank of India’s comprehensive range of banking and financial services cater to various customer segments, including corporate, institutional, commercial, agricultural, industrial, and individual clients across India. The company also offers international banking services to its Indian clientele and operates in multiple foreign markets. With promising Smart Scores across key factors like Dividend, Growth, Value, and Momentum, State Bank of India appears well-positioned for sustained growth and shareholder returns in the long run.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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