SBI - Sustained Sector Leadership In A Benign Environment: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.State Bank of India’s FY24 annual report offers incremental insights on its sector leadership across asset classes, key catalysts driving its superior asset quality, competitive edge in sourcing, improving digital stack (YONO), an unparalleled lean distribution model, and a potent combination of cross-sell focus and competencies. While asset quality continued to stay benign, we argue that SBI needs to further build its provision buffer (provision coverage ratio at 75%), given a low margin of safety on account of higher mix of ageing gross non-performing assets. While SBI has been able to improve its capital buffer via internal accruals, the bank needs to evaluate fundraising alternatives in the medium-term to meet its growth guidance (~13-15% for FY25). Although SBI managed credit costs < 30bps on the back of lower slippage run-rate and healthy recoveries, we expect credit costs to normalise upwards (average ~40 bps) during FY25-26. .We reiterate that the combination of SBI’s traditional strengths and newly added moats are likely to reflect in efficiency gains, resulting in RoAs sustaining at over 1%. We factor in further operating efficiencies and marginally lower credit costs in our estimates and reiterate Buy with a revised target price of Rs 1,040 (standalone bank at 1.6 times March-26 adjusted book value per share)..Click on the attachment to read the full report:.Neogen Chemicals - Battery Materials A Growth Engine: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI - Sustained Sector Leadership In A Benign Environment: HDFC Securities

We reiterate that the combination of SBI’s traditional strengths and newly added moats are likely to reflect in efficiency gains, resulting in RoAs sustaining at over 1%.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

SBI - Sustained Sector Leadership In A Benign Environment: HDFC Securities

We reiterate that the combination of SBI’s traditional strengths and newly added moats are likely to reflect in efficiency gains, resulting in RoAs sustaining at over 1%.

Choose a plan

Follow Us

DOWNLOAD THE APP