Date: May 21, 2012 SBI Market Price: 2020
This Indian Banking heavyweight declared outstanding results on May 18th for FY12.
SBI chairman Pratip Chaudhuri reported improvements: PAT has shot up 43% over that of FY11. Dividend has been increased from 300% to 350% of Face Value of Rs 10.
SBI has also successfully managed a significant improvement in asset quality. Its gross NPAs fell to 4.44% from last quarter’s 4.61%. Significant restructuring has helped recognize and recover NPA.
Lets do a quick Analysis of this stock to see where its heading.
Pricing Snapshot
A 5-year view of the share price of SBI shows us:
SBI – Price Chart – Click graph to enlarge
- Share price has risen 17% per annum over the last 5 years.
- The all time high was 3515 in Nov 2010. Today it is 43% below this peak.
- The current market cap is 1,35,000 cr. ranking it #6 among Indian firms.
Financial Snapshot
- EPS, Income and PAT have appreciated by 19%, 21%and 19% CAGR over this 5-year period.
SBI Consolidated Financials – JainMatrix Investments – Click Graph to enlarge
- P/E has moved in a range of 6 – 21 times. Current P/E of 8.5 indicates Underpriced status.
- PEG is at 0.44 – indicates undervalued status
Conclusion
- SBI is today an under priced stock. Investors can buy at these lower levels.
JainMatrix Knowledge Base:
See other useful reports
- Bajaj Finance – https://jainmatrix.com/2012/02/16/bajaj-finance/
- Yes Bank – https://jainmatrix.com/2011/03/05/yesbank/
- IPO of Future Ventures – https://jainmatrix.com/2011/04/23/futureventures/
Disclosure: It is safe to assume that if the JainMatrix website recommends a stock, the researcher has already invested in it.
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