Brokerages turn bullish on SBI on attractive valuation; see 20-44% upside

From its recent low of Rs 150.85 apiece (closing basis) touched on May 22, 2020, the stock has rallied 39 per cent on the BSE, data show

India’s largest state-owned bank, State Bank of India (SBI), has seen back-to-back upgrades by brokerages — both foreign and domestic.

Attractive valuation relative to private peers, improvement in the financial sector, and timely support from the government and Reserve Bank of India (RBI) in the wake of Covid-19 pandemic are boosting analysts’ confidence, apart from impressive June quarter (Q1FY21) numbers.

From its recent low of Rs 150.85 apiece on May 22, the stock has rallied 49 per cent on the BSE, as against 28.67 per cent gain in the benchmark S&P BSE Sensex till Friday, data show. And there is