SBI Receives 'Buy' Rating from MarketsMOJO, Shows Strong Lending Practices and Consistent Growth

State Bank of India (SBI), one of the largest public banks in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the bank's strong lending practices, with a low Gross NPA ratio of 2.76%. This indicates that the bank has been able to effectively manage its loans and maintain a healthy balance sheet.
In addition, SBI has shown consistent long-term growth, with its net profit growing at an annual rate of 323.26%. This positive trend was also reflected in the bank's recent quarterly results, where it reported the lowest Gross NPA of 2.24% and the highest interest earned and net interest income.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its technical trend. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

Furthermore, SBI has a high institutional holding of 35.09%, which suggests that these investors have better resources and capabilities to analyze the fundamentals of the company. This adds to the positive sentiment surrounding the stock.

Over the last 3 years, SBI has consistently outperformed the BSE 500 index and has generated a return of 45.00%. With a market cap of Rs 7,64,170 crore, it is the largest company in the public banking sector and accounts for 42.74% of the entire sector. Its annual sales of Rs 415,130.66 crore also make up 37.61% of the industry.

However, there are some risks to consider when investing in SBI. With a ROA of 1.1, the stock is currently trading at an expensive valuation with a price to book value of 2. This indicates that the stock may be overvalued compared to its historical average. Additionally, while the stock has generated a high return of 45.00% in the past year, its profits have only increased by 31.9%. This results in a PEG ratio of 0.4, which may suggest that the stock is not as undervalued as it may seem.

Overall, with its strong fundamentals, consistent returns, and positive technical outlook, SBI is a promising stock to consider for investment. However, it is important to carefully assess the risks and make an informed decision before investing.