State Bank of India – FY12 results

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, JainMatrix Investments

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

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.

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