SBI Stock Likely To Give 40 Percent Return Says Motilal Oswal In Its Report

SBI Share Price: Since the Hindenburg Research report against the Adani group came to the fore, the stock of the country’s largest public sector bank State Bank of India has also seen a huge decline. And for more than one and a half months, SBI stock is trading in a limited range. But brokerage house Motilal Oswal believes that investing in SBI shares at the current level can give investors excellent returns in the coming days.

Motilal Oswal has said in its report that long-term investors can invest in SBI stock for a target of Rs 725. At present, SBI stock is trading around Rs.525. That is, from these levels, SBI stock can give up to 40 percent returns to investors. The brokerage house has advised investors to invest in SBI shares on every fall. The stock of SBI is one of the top picks of the brokerage house in the banking sector.

The brokerage house has said in its report that SBI is performing better due to excellent loan growth figures, improvement in margins and reduction in provisioning. The bank will benefit from the repricing of loans linked to MCLR. This will increase the net interest income. It has been said in the report that there is a possibility of further improvement in the margin of SBI. With the increase in interest rates on deposits, there is immense scope for increase in MCLR. This will improve the margin in the bank. There is no challenge before the bank regarding NPA.

Let us tell you that the stock of SBI had made a high of Rs 629 in December. Now the stock is trading down 17 percent from the high level. The stock went down to Rs 499 after the Hindenburg report on Adani Group came out. It has remained stable since then.

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