SBI share price to skyrocket 32 pct in just this short period! Want to make money? Experts said do this now
SBI share price is one of the most coveted ones on the stock markets. It indicates the authority of the State Bank of India in the financial sector. If you want to earn big profits, then experts have this to say to you.
SBI share price: State Bank of India is well poised for an earnings recovery on steady operating performance. Reduction in corporate tax by the central government from 30 per cent to 22 per cent will have a positive impact on SBI earnings. Therefore, the stock market experts have gone bullish over the SBI share price and they are of the opinion that the it would give 32 per cent return in just one year! Currently, the SBI share price is oscillating around Rs 265 and in a one-year perspective, the banking scrip is poised to show Rs 350 levels.
Speaking on the future outlook of SBI share price Nitin Aggarwal, Research Analyst at Motilal Oswal said, "After reporting sub-optimal performance in the last few years due to high opex, interest reversals and provisioning pressures, the State Bank of India is now well poised for an earnings recovery. The revival in earnings will be led by a steady operating performance at the PPOP level (14 pe cent CAGR over FY19-FY21E), recoveries from large NCLT resolutions and normalization of credit cost over FY20E/FY21E v/s average of 3.2 per cent over FY17-FY19. Further, reduction in the corporate tax rate from 30 per cent to 22 per cent should also support earnings; however, FY20E will be impacted due to one-time DTA reversal while full benefits will come in FY21 onwards."
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On his suggestion to the share market investors, Aggarwal said that one can buy SBI shares are at around Rs 265 per stock levels for a target of Rs 350 in long-term perspective mans around one year.
Giving an idea about the SBI shares in short-term perspective SEBI registered technical equity analyst Simi Bhaumik said, "SBI shares are quite bullish and have strong support at Rs 260. In the short-term perspective, the counter may show Rs 280 to Rs 285 per stock levels and once it breaks that level can soon show Rs 295 to Rs 300 per stock levels in short-term." However, Simi Bhaumik advised share market investors to maintain the stop loss at Rs 260 while taking a buy position in the SBI stocks.