State Bank of India Receives 'Buy' Rating from MarketsMOJO, Showcases Strong Financial Performance

State Bank of India, one of the largest public banks in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong lending practices, with a low Gross NPA ratio of 2.76%. In addition, the company has shown healthy long-term growth, with an annual net profit growth rate of 54.33%.
The company has also declared positive results for the last three consecutive quarters, with its Gross NPA(Q) being the lowest at 2.13%, DPS(Y) at the highest at Rs 13.70, and INTEREST EARNED(Q) at the highest at Rs 113,870.56 crore. This showcases the company's strong financial performance and stability.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its technical trend from Mildly Bullish on 25-Nov-24. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also indicating a bullish trend for the stock.

Moreover, State Bank of India has a high institutional holding of 34.82%, which indicates that these investors have better capabilities and resources to analyze the fundamentals of the company compared to retail investors.

In terms of market performance, State Bank of India has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, generating a return of 50.77% in the last 1 year. With a market cap of Rs 7,28,294 crore, it is the biggest company in the public bank sector, constituting 45.07% of the entire sector. Its annual sales of Rs 443,172.95 crore also make up 37.72% of the industry.

However, there are some risks associated with investing in State Bank of India. With a ROA of 1.1, the company has an expensive valuation with a 1.8 price to book value. Additionally, the stock is currently trading at a fair value compared to its average historical valuations. While the stock has generated a return of 50.77% in the past year, its profits have only risen by 13.4%, resulting in a PEG ratio of 0.8.

Overall, State Bank of India is a strong and stable company with a positive outlook for the future. Its strong financial performance, high institutional holding, and market-beating returns make it a promising investment opportunity. However, investors should also consider the potential risks associated with the stock before making any investment decisions.