India Investment, Stocks, Credit Card and Retail Forum
Investments in Indian Equity and Research => Equity Investments, Fundamental Research and Sectors Review => Sensex and Nifty Company Analysis => Topic started by: resh on June 22, 2012, 09:30:15 AM
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Institutional Investor, BOFA Merrill had a meeting with Top SBI officials after which it is satisfied with the Asset quality of the bank despite the stagflation prevailing in Indian Economy. In a Research note Merrill said,
We prefer SBI within Govt. Banks, as a) it has recognized a lot of ‘asset quality’ issues in FY12 (still est. ~2.5% slippage rate; higher than the sector avg.); b) attractive risk-return (trades at ~1.3-1.4x FY13E adj. book, with RoEs of ~16.5- 17.0%) and c) EPS growth of +20% through FY13/14. Reiterate Buy
It is indeed quoting at very attractive valuations. Merrill's Target price is rs 2500 about 18% upside from current levels.