Author - Aniket Khanolkar

  • Aniket Khanolkar
16 Mar

Will incur Rs 10000 mn Capex per year over next 3-4 years – Aarti Industries

 Update on the Indian Equity Market:

On Tuesday, Nifty closed in the red at 14,910 (-0.1%). Among the sectoral indices, IT (+1.3%), FMCG (+0.9%), and AUTO (+0.2%) closed higher. PSU Bank (-1.3%), PVT Bank (-1.0%), and Financial Services (-0.8%) closed in the red. Asian Paints (+4.7%), Dr. Reddy’s Laboratories (+2.6%), and HUL (+1.59%) closed on a positive note. CIPLA (-1.6%), Tata Steel (-1.6%), and ICICI Bank (-1.5%) were among the top losers.

Excerpts from an interview of Mr. Rajendra V Gogri, Chairman and MD, Aarti Industries with CNBC-TV18 dated 15th March 2021:

  • Gogri said the demand is higher. The discretionary sector demand has picked up.
  • Considering China plus one factor, demand is diverted to India. India comes ahead of other countries like Vietnam, Bangladesh, and Malaysia when it comes to specialty chemicals.
  • The company is expecting pre-Covid demand in Q4FY21E.
  • Speaking on capacity, he said the company will incur a Capex of Rs 10,000 mn each year for the next 3-4 years.
  • This Capex will be utilized to introduce new products as well as the expansion of existing products.
  • The company will not directly participate in the Pharma PLI scheme, however, the Pharma PLI Scheme is expected to benefit the general chemical sector indirectly.
  • The company has posted single-digit revenue growth in 9MFY21 and a flat bottom line YoY is expected in FY21E. However, Mr. Gogri guided for a 20% growth in top-line as well as in bottom line in FY22E.
  • Exports are usually 40-45% of total revenues and the rest is domestic sales. The major growth is expected on the discretionary side which was badly affected in 1FY21.
  • Speaking on capacity utilization, he said some plants are running at 80-90% utilization levels and new capacities are running at 20-30% utilization levels.
  • Speaking on the demerger of the Pharmaceutical business, he said a committee has been set up to look at the available option. The decision of the committee is yet to come on board.

 

Asset Multiplier comments:

  • As per a study conducted by McKinsey & Company, the Indian specialty market is expected to grow to $40bn over the next 4 years from $28bn in 2018.
  • Within the specialty chemical segments in India, surfactants, specialty polymers, and textile chemicals and dyes are among the top segments expected to further grow in line with market demand.
  • Indian specialty companies need to ramp up capacities and infrastructure to get maximum advantage from specialty chemical sector growth prospects.

 

Consensus Estimate: (Source: Market screener website)

  • The closing price of Aarti Industries was ₹ 1,286 as of 16-March-2021.  It traded at 41x/29x/25x the consensus Earnings per share estimate of ₹ 31.0/44.0/52.1 for FY21E/FY22E/FY23E respectively.
  • The consensus average target price is ₹ 1,241/- which implies a PE multiple of 24x on FY23E EPS of 52.1/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

 

By Aarti Ind, Chemicals , 0 Comments Read more...
10 Mar

Expect to take another price hike from April – Bluestar

 Update on the Indian Equity Market:

On Wednesday, Nifty closed in the green at 15,175. Among the sectoral indices, Metal (+1.9%), IT (+1.7%), and Pharma (+1.8%) closed higher. PSU Bank (-0.2%) was the only sector that closed in the red. Eicher Motors (+3.1%), JSW Steel (+3.0%), and Hindalco (+2.3%) closed on a positive note. SBI Life (-3.5%), ONGC (-1.8%), and HDFC Life (-1.5%) were among the top losers.

Excerpts from an interview of Mr. B Thiagarajan, MD, Bluestar with CNBC-TV18 dated 09th March 2021:

  • The demand for cooling products has picked up since the festival season. 20% sales growth is expected in Q4FY21E.
  • The Indian Meteorological Department (IMD) has indicated for hotter than usual summer season in 2021.
  • Thiagarajan expects 25% sales growth in the summer season for Bluestar.
  • The demand recovery is primarily due to people spending more time at home.
  • The disposable income is expected to be higher in the hands of people as there is saving due to no summer vacations and less travel.
  • The company has taken a price increase by 3-5% since Jan-21 on its products. The second price hike has not yet been taken by the company.
  • The second price hike might come from April 1. The rise in raw materials, transportation charges, and ABS plastic costs are not coming down.
  • The dealers are stocking up ahead of the season.
  • Room AC market share for the Bluestar was ~12.8% last year and currently it is 13%. The company targets to maintain a 15% market share by FY23E.
  • Food delivery and the pharma sector are driving the growth of commercial refrigeration.
  • In the Electromechanical projects segment, growth is coming from the manufacturing sector.
  • Thiagarajan says Room air conditioners are poised for growth in coming years led by positive announcements under the PLI scheme.

 

Asset Multiplier comments:

  • The coming summer season will be crucial for Air cooling products as last summer season was a washout led by lockdowns.
  • Industry players are bullish on the upcoming summer season as early sales indicate an uptrend.
  • On the commodity cost front, inflationary pressure is witnessed by the industry. Most AC players have resorted to taking price hikes.
  • Increased demand due to rise in temperature bodes well for the industry but an increase in commodity cost might hurt operating margins in the coming next 2 quarters.

 

Consensus Estimate: (Source: Market screener website)

  • The closing price of Bluestar was ₹ 932 as of 10-March-2021.  It traded at 94x/47x/36x the consensus Earnings per share estimate of ₹ 9.87/19.9/26.1 for FY21E/FY22E/FY23E respectively.
  • The consensus average target price is ₹ 761/- which implies a PE multiple of 29x on FY23E EPS of 26.1/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Blue star, Consumer durable , , 0 Comments Read more...
04 Mar

Demand for Housing loans is strong – HDFC

Update on the Indian Equity Market:

On Thursday, Nifty closed in the red at 15,081. Among the sectoral indices, Media (+1.6%), and Realty (+0.1%) closed higher. Metals (-2.0%), Financial Services (-1.8%), and Financial Services 25/50 (-1.6%) closed in the red. Ultratech Cement (+3.9%), Adani Ports (+3.0%), and Shree Cement (+2.9%) closed on a positive note. JSW Steel (-2.9%), HDFC (-2.6%), and Hindalco (-2.6%) were among the top losers.

Excerpts from an interview of Mr. Keki Mistry, Vice Chairman  & CEO of HDFC with CNBC-TV18 dated 03rd March 2021:

  • Interest rates may bottom out by March-end and there is not much downside expected from current levels.
  • The demand for housing loans is extremely strong. In Q3FY21, individual loan disbursements were ~26% higher YoY for HDFC.
  • 3rd quarter of last year (2019) was not impacted by covid, which indicates that the growth was not on a lower base.
  • HDFC manages COF (Cost of funds) carefully which helps to manage spread in higher/lower interest rate scenarios. The incremental cost of borrowings is coming down, which led to rate cut by some players. HDFC will also take an ALM meeting to take a decision on this front.
  • He said that on a 9-month basis individual loans constituted 76% of total loans and 24% is non-individual loans.
  • In non-individual loans, 11% is construction finance and the rest is lease rental discounting. 80% of the growth came from individual loans and the rest from non-individual loans in 9MFY21.
  • There is a pickup in demand in every segment.
  • Speaking on projects, he said the builders are able to finish projects. Some projects are stuck and they are taking a bit more time to come around.
  • The company is not looking to raise capital.
  • The company is looking to list HDFC ERGO and HDFC Credila, however, it is still in the planning stage.

 

Asset Multiplier comments:

  • Cheaper home loan rates have helped people to buy homes. The Home loan rates are already at a 15 year low. This has acted as a trigger for rising home loans.
  • RBI has lowered its repo by 115 bps since March 2020, the bank has also passed these benefits by offering lower interest rates.
  • Many players like SBI, Kotak Mahindra Bank have announced a reduction in home loan interest rates.
  • Lower interest rates and lower stamp duty in some regions might act as a demand driver for residential real estate in India.

 

Consensus Estimate: (Source: Market screener and Investing.com website)

  • The closing price of HDFC was ₹ 2,585 as of 04-March-2021.  It traded at 4.4x/4.0x/3.6 the consensus Book value per share estimate of ₹ 582/633/699 for FY21E/FY22E/FY23E respectively.
  • The consensus average target price is ₹ 2,921/- which implies a PB multiple of 4.1x on FY23E BVPS of 699/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By HDFC, Housing Finance 0 Comments Read more...
28 Feb

This week in a nutshell (Feb 22nd to Feb 26th)

                                                                                      Technical Talks

As expected, Nifty continued to decline this week. On Friday, the index had a gap down opening and it witnessed a fall of (-3.8%). Opening on 22nd Feb at 14,999 and closing on 26th Feb at 14,529, it made a weekly loss of ~3%. For the next week we think that on the downside, 50DMA of 14,445 could act as a support. On the upside, 14,957 is the key level to watch out for as the 20DMA might act as a resistance. With the RSI (45) and MACD on a declining trend, the technical indicators have cooled off a bit but the trend is declining. There could be further possible decline.                                                           

Weekly highlights

  • The Indian Cabinet launched a production-linked incentive scheme (PLI) for the Pharmaceutical sector. The outlay of ~Rs 150 bn is approved by the Union Cabinet. This scheme will benefit domestic manufacturers to offer a wide range of affordable medicines to consumers, and it will also help to generate employment. The duration of the scheme would be from FY21 to FY29.
  • Agriculture Ministry estimates that India’s foodgrain production will rise by 2% in FY21 to an all-time high of 303.34mn tonnes. The estimates suggest a better output of rice, wheat, pulses, and coarse cereals. Availability of grains reduces dependence on a good monsoon.
  • Oil prices climbed this week to fresh 13-month highs after US government data showed a drop in crude output after a deep freeze disrupted production last week. The Brent crude futures and US West Texas Intermediate (WTI) crude futures rallied to 66.96$ and 63.01per barrel respectively.
  • Many OEMs (Automobile companies) have written to GOI to address the semiconductor shortage issue. The industry has requested the government to direct embassies to help in restoring supplies of semiconductors.
  • The foreign institutional investors’ (FII) bought Rs 181bn worth Indian equity shares last week. The inflows are elevated due to the bulk deal of Bosch Ltd. Excluding this deal, FIIs were net sellers. Domestic institutional investors (DII) were net buyers during this week of Rs 2.8 bn.

Things to watch out for this week

  • Auto data- OEMs will be reporting their volumes data for the month of February. The previous 2-3 months performance for almost all OEM’s was impressive led by festive season demand and some pent-up The semi-conductor shortage issue impact on monthly volumes is key to watch. The volume numbers will set the tone for auto OEM’s performance in March.
By Weekly Markets highlights, Weekly update 0 Comments Read more...
15 Feb

Actively looking for acquisitions – Happiest Minds

Update on the Indian Equity Market:

On Monday, Nifty closed in the green at 15,315. Among the sectoral indices, Bank (+3.3%), Private Bank (+3.3%), and Financial Services (+2.9%) closed higher. Metal (-0.5%), IT (-0.4%) and Pharma (-0.3%) closed in the red. Axis Bank (+6.2%), ICICI Bank (+4.2%), and SBI (+4.0%) closed on a positive note. SBI Life (-2.3%), HDFC Life (-2.1%), and DR Reddy (-1.8%) were among the top losers.

Excerpts from an interview of Mr. Joseph Anantharaju, Executive Vice Chairman & CEO of Product Engineering Services, and Venkatraman Narayanan, MD and CFO, Happiest Minds with CNBC-TV18 dated 12th February 2021:

  • The company guided for a 20% revenue growth rate. The demand has panned out well.
  • The company won 6 new deal wins in 3QFY21.
  • Speaking about verticals, Mr. Joseph said edutech was doing well. The company received new requests and projects.
  • The industrial, B2B, and logistical space seem to be having new initiatives, which are leading to higher demand.
  • On operating margins, he said for the last 3 quarters the company is delivering margins in the range of 21-23%.
  • The company has guided for a profit margin of 22%-24% in FY22E.
  • On revenue growth, the company will maintain long term growth at 20%.
  • The company witnessed some efficiencies in the past 3 quarters, the plan is to retain some of those going forward.
  • The company recently completed an acquisition of PGS for 8.25 mn$. The company is actively looking for acquisitions.
  • On dividend, the company has not yet declared but the board will look after it.

 

Asset Multiplier comments:

  • The improvement in new deals signed and increased focus on IT budgets by clients has been mentioned by most of the IT Companies during the December quarter earnings call.
  • In 3QFY21, most of the IT companies have significantly expanded their operating margins, which was a result of continuing control on costs and improved sales.
  • It would be interesting to watch the performance of IT companies in the next couple of quarters, as companies have guided for lower margins but if cost control continues (led by on-off shore mix, WFH) then the margins might sustain these high levels.

 

Consensus Estimate: (Source: TIKR website)

  • The closing price of Happiest Minds was ₹ 401 as of 15-February-2021.  It traded at 36x/35.8x the consensus Earnings per share estimate of ₹ 11/11.2 for FY21E/FY22E/ respectively.
  • The consensus average target price is ₹ 385/- which implies a PE multiple of 34x on FY22E EPS of 11.2/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Happiest minds, IT , 0 Comments Read more...
10 Feb

Optimistic on Sun NXT – Sun TV

Update on the Indian Equity Market:

On Wednesday, Nifty closed in the red at 15,107. Among the sectoral indices, Realty (+1.6%), Pharma (+0.7%), and IT (+0.4%) closed higher. PVT Bank (-0.7%), Fin Services (-0.2%) and FMCG (-0.1%) closed in the red. Cipla (+2.8%), Bajaj Finserv (+2.8%), and SBI Life (+2.7%) closed on a positive note. Eicher Motors (-2.2%), Bharti Airtel (-1.6%), and HDFC Bank (-1.2%) were among the top losers.

Excerpts from an interview of Mr. SL Narayan, CFO, Sun Group with CNBC-TV18 dated 09th February 2021:

  • The company expects double-digit growth across financials.
  • Narayan said things are looking good since January-21.
  • The advertising revenues are still lagging but the company is in a better position as compared to Q1FY21.
  • The company was impacted more as compared to large peers because of its dependence on local revenues.
  • He said the entire ecosystem is affected and hence there is some impact on the company as well.
  • On Sun NXT, he said the company had a large contract that came up for renewal. However, the negotiations couldn’t be concluded on time and its revenues were not recognized in Q3FY21.
  • Speaking about subscribers for Sun NXT, he said the company is not spending on customer acquisition because they don’t want to build an OTT at a significant upfront investment.
  • Movie releases will bring back the growth in subscription revenues.
  • A lot of new movies will be hitting the screen in coming times.

 

Consensus Estimate: (Source: market screener website)

  • The closing price of Sun TV was ₹ 528 as of 10-February-2021.  It traded at 15x/13x/12x the consensus Earnings per share estimate of ₹ 35.8/39.3/42.3 for FY21E/FY22E/ FY23E respectively.
  • The consensus average target price is ₹ 566/- which implies a PE multiple of 13x on FY23E EPS of 42.3/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

 

By Miscellaneous, Sun TV , 0 Comments Read more...
04 Feb

Entry into new categories with Soulfull acquisition – Tata consumer

Update on the Indian Equity Market:

On Thursday Nifty closed 0.7% higher at 14,896. Among the sectoral indices, PSU Banks (+5.9%), FMCG (+2.5%), and Metal (+2.0%) closed higher. IT (-0.4%) was the only sector which closed in the red. SBI (+6.6%), ITC (+6.1%), and Bajaj Finance (+5.0%) closed on a positive note. Asian Paints (-1.9%), UPL (-1.7%), and Cipla (-1.6%) were among the top losers.

Excerpts from an interview of Mr. Sunil D’souza, MD & CEO, Tata Consumer with CNBC-TV18 dated 03rd February 2021:

  • Tea prices have not started to taper off and the company is confident that proper execution will deliver good results in the future.
  • Starbucks and NourishCo Beverages are showing sequential improvement.
  • On ‘Soulfull’ acquisition, he said the Company looked at strategic and financial filters. It will help to get into new categories including snacking, breakfast.
  • This will lead to entry into new consumer occasions. The company was not previously present in these segments.
  • These new products are margin accretive products. EBITDA margins for Soulful are higher as compare to the current basket.
  • Speaking about the tea business, he said the margins are a transient issue. The company has increased its share by 90 bps (Y-0-Y).
  • The company has also integrated its distributor and digitize its system.
  • The account receivables days are down 50% from where the company started.
  • On future acquisitions, he said the company is juggling around different pieces and the announcement will be made when the company gets closer to it.
  • The gross cash of the company is around Rs 2,500 crores, the company makes judicious of the cash. The company around Rs 156 crore cash for the ‘Soulfull’ acquisition.
  • The company expects double-digit growth across financials.

 

Consensus Estimate: (Source: market screener website)

  • The closing price of Tata Consumer was ₹ 589 as of 04-February-2021.  It traded at 58x/47x/40x the consensus Earnings per share estimate of ₹ 10.2/12.5/14.7 for FY21E/FY22E/ FY23E respectively.
  • The consensus average target price is ₹ 605/- which implies a PE multiple of 41x on FY23E EPS of 14.7/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

 

By Consumer, Tata Consumer , 0 Comments Read more...
27 Jan

Bagged largest EPC Order – L&T

Update on the Indian Equity Market:

On Wednesday Nifty closed 1.9% lower at 13,568. Among the sectoral indices, FMCG (+0.3%) was the only sector that closed higher. PVT Bank (-3.1%), Bank (-2.9%), and FIN Services (-2.8%) led the indices that closed in the red. Tech M (+2.6%), SBI Life (+2.3%), and Wipro (+2.0%) closed on a positive note. Tata Motors (-4.4%), Tata Steel (-4.3%), and Titan (-4.2%) were among the top losers.

Excerpts from an interview of Mr. SN Subrahmanyam, MD & CEO, L&T with CNBC-TV18 dated 27th January 2021:

  • Speaking about the Q3FY21 results, Mr. Subrahmanayan said the company received a record order inflow of Rs 73,000 crores.
  • L&T bagged it’s largest EPC order of Mumbai – Ahmedabad high speed 2 packages at Rs 32,000 crores and India’s largest bridge order for Rs 2,900crores.
  • Speaking about sales, he said the company touched previous years same quarter number (Q3FY20), the number fell short of Rs 600-700 crore.
  • Looking at the growth in orders the momentum is back.
  • The high margins are sustainable as there are levers to save ahead.
  • Working capital has fallen and cash inflows have improved. The company has total debt of Rs 1,85,000 crores. The company has paid Rs 10,000 crores in Q3FY21 and the debt has now come down to Rs 1,75,000 crores. Out of this Rs, 91,000 crore is L&T Finance Holdings debt.
  • The company has not utilized its entire debt, the board at the start of the year took a decision to keep cash of Rs 35-45,000 crores due to uncertainties.
  • Speaking about the realty sector, he said properties in Bangalore, sea woods, and Mumbai had done well in December 20. The company will not invest inland, but only in the construction part.

 

 

Consensus Estimate: (Source: market screener and Investing.com websites)

  • The closing price of L&T was ₹ 1,358 as of 27-January-2021.  It traded at 20x/18x/16x the consensus Earnings per share estimate of ₹ 67.9/73.7/86.8 for FY21E/FY22E/ FY23E respectively.
  • The consensus average target price for L&T is ₹ 1,481/- which implies a PE multiple of 17x on FY23E EPS of 86.8/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

 

By L&T , 0 Comments Read more...
19 Jan

Will turn EBITDA positive as new releases come – PVR

Update on the Indian Equity Market:

On Tuesday Nifty closed 1.7% higher at 14,521. Among the sectoral indices, Realty (+4.2%), Metal (+2.9%), and PSU Bank (+2.7%) closed higher. None of the sectors closed in the red. Bajaj Finserv (+6.7%), Bajaj Finance (+5.3%), and Tata Motors (+5.2%) closed on a positive note. ITC (-0.4%), Tech M (-0.3%), and Britannia (-0.1%) were among the top losers.

Excerpts from an interview of Mr. Nitin Sood, CFO, PVR with CNBC-TV18 dated 18th January 2021:

  • Speaking about footfalls, Sood said the company was given permission to open in October. While the theatres are open, there are no big releases resulting in lower footfalls.
  • The film ‘Master’ has done well for the company in the South and it gives hope of new content releasing soon.
  • On new content, he said the company is in talks with producers and the Bollywood community where big film releases have not been announced.
  • The industry is waiting for someone to take the first leap and with the movie ‘Master’ release, the release pipeline may get kicked off.
  • Speaking about earning trajectory, he said it is difficult to predict as it is dependent on the film release calendar. The company expects to turn EBITDA positive in the coming 2 to 3 months as more releases are planned.
  • The company has taken cost reduction measures during the nine months in which the business was completely shut.
  • The pre-COVID level of average break-even occupancies used to be between 23-25%, these numbers are now sub 20% led by the cost reduction initiatives taken by the company.
  • There are a lot of films pending to be released in 2021.
  • Speaking about fundraising, he says the company was sitting on the liquidity of Rs 370 crores and they have taken board approval to raise additional liquidity. This will help to keep the balance sheet strong and use to build a new screen portfolio.

 

 

Consensus Estimate: (Source: market screener and Investing.com websites)

  • The closing price of PVR was ₹ 1,526 as of 19-January-2021.  It traded at 64x/ 27x the consensus Earnings per share estimate of ₹ 23.9/56.5 for FY22E/ FY23E respectively.
  • The consensus average target price for PVR is ₹ 1567/- which implies a PE multiple of 28x on FY23E EPS of 56.5/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Entertainment, PVR cinemas , 0 Comments Read more...
11 Jan

Concluded the issuance of bonds to fund overseas business- SBI

Update on the Indian Equity Market:
On Monday Nifty closed 1% higher at 14,485. Among the sectoral indices, IT (+3.3%), Auto (+2.6%), and Realty (+0.6%) closed higher. Media (-1.5%), PSU Bank (-1.5%), and METAL (-1.0%) were the sectoral indices that closed lower. Tata Motors (+12.6%), HCL Tech (+5.9%), and Infosys (+4.8%) closed on a positive note. Tata Steel (-2.6%), Bajaj Finance (-1.9%), and Adani Ports (-1.9%) were among the top losers.

Excerpts from an interview of Mr. Ashwani Bhatia, MD, SBI with CNBC-TV18 dated 8th January 2020:
● State Bank of India (SBI), has concluded the issuance of USD 600mn from bonds to fund the expansion of their overseas business.
● Mr. Ashwani Bhatia said there was a funding gap on the overseas side and this was the right time to fill it.
● SBI is the first bank to raise money post the Covid crisis. The spreads are better as compared to the last 6-7 years.
● Speaking about asset quality on the domestic side, he said the bank has not seen the gloom that was anticipated on slippages.
● On credit growth, he said there could be 8-9% growth in 2HFY21. The demand is coming back and, retail has been a good surprise.
● The decision taken by the central government, RBI, and tax cuts in Maharashtra has helped the bank.
● On loan growth, he said the bank is sitting on excess SLR and it can be used for the economy in the next 3 months. The bank reported a growth of 8% and the expectation is to touch double digits.
● In terms of recovery, he said Rs 7,000-10,000 cr of recovery is expected.
Consensus Estimate: (Source: market screener and investing.com websites)
● The closing price of SBI was ₹ 283 as of 11-January-2020. It traded at 1x/ 0.9x/ 0.8x the consensus BVPS per share estimate of ₹ 262/286/318 for FY21E/ FY22E/ FY23E respectively.
● The consensus average target price for SBI is ₹ 312/- which implies a PB multiple of 0.9x on FY23E BVPS of 318/-.
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Bank, SBI 0 Comments Read more...