InvestorQ : Do you see the SBI rally continuing in the market?
manisha Kolvenkar made post

Do you see the SBI rally continuing in the market?

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Crowny Pinto answered.
4 weeks ago
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In a way, SBI has been a late mover among banks and to that extent it has to catch up with other private sector banks. However, since early November, SBI has rallied 45% after the second quarter numbers were impressive. You must be conscious that the PSU tag will be a sort of hindrance to SBI valuation and that gap will remain. However, it is still reasonable.

The stock is trading at 0.3 times 2022 book value, which is very cheap. It has the best brand franchise among banks on the liability and asset sides. Also the value of its subsidiaries in insurance, cards and asset management are not full factored into the price. For example, Gross NPAs at 5.4% are lower but are way above private banks. While it is better than PSU banks, upsides could be limited.

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