Money earning tip: SBI share price to deliver more than 50% return; experts give 'shares to buy today' tag

SBI share price has been in news post-Union Budget 2021. As per the SBI share price history, the PSU stock has hit its last one month high of Rs 415 and then profit-booking triggered in the stock. However, as per the stock market experts, this is the share to buy at this stage instead of getting panic. They advised investors to buy SBI shares at current levels as SBI share price today is at around Rs 390 levels, which is a good place to enter. They said in the long-term time horizon SBI share price is expected to go up to Rs 600, which is more than 50 per cent.

Speaking on the SBI share price target Saurabh Jain, AVP — Research at S&P said, "SBI share price is peaking after the budget presentation. This rise in SBI share price is due to the special focus on the PSUs, especially their profitability in focus of the Narendra Modi Government. The Government of India (GoI) has already made it clear that it is going to divest all loss-making PSUs that makes them compete against their private rivals. This has worked in favour of the SBI shares. Apart from that, SBI has attracted good traction in retail that may help SBI shares to further rise."

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As per the CLSA rating, "SBI’s performance has been strong with NIMs in spite of high liquidity sustaining at 20bps higher than FY20 levels and highest NIMs in last six years. Through the last 1-2 years SBI has cut its SA rates by 100bps and still sustained CASA ratio of 45%."

CLSA believes SBI still remains a deep value opportunity and current rerating should continue as:

1] SBI is one of the biggest beneficiaries of the benign corporate credit cycle;

2] Unlike PSU peers, SBI has gained loan/deposit market share in the last decade; and

3] ROAs of 90bps will be comparable to the FY10-14 cycle.