BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Valuations at 0.4 times FY20 adjusted book for inarguably the leading and superior franchise, State Bank of India should not be overlooked – especially when some of the associated risks are subsiding.
As anticipated, risks were mounting high on its valuations and it under performed Bank Nifty by 10-20% in past three to six months.
However, at this juncture, some of the concerns are subsiding: 1) industry-wide improvement in collection efficiency will play out for SBI too; 2) recent equity raising in associated banks caps the cost that SBI has to shell out; 3) Notable transition towards superior asset profile with secular progress in retail (home) loans and recalibrated focus on quality corporates.
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