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The stock of SBI is quoting at Rs 335 apiece, having surged 21 per cent so far in calendar year 2021
India's largest public sector bank State Bank of India (SBI) is set to report its Q3FY21 result on Thursday, February 4. The stock of the lender became analysts' darling after the bank's earnings, during the preceding two quarters, beat Street expectations by huge margins. A repeat this time may, therefore, lead to further re-rating of the stock.
Goldman Sachs, for instance, has a target price of Rs 383 on the stock as it believes investors are still pricing in around 60 per cent hit to its FY21E book value, which seems excessive. Besides, examples of valuation re-rating driven by ROA improvement for financial stocks globally support sentiment, it says.
HSBC, on the other hand, thinks SBI's strong balance sheet position
First Published: Feb 03 2021 | 1:22 PM IST