Are SBI Shares Poised for More Gains?
The country’s largest public sector lender, State Bank of India (SBI), is drawing significant market attention ahead of a crucial board meeting on May 20. The meeting is set to consider raising up to $3 billion via public or private offerings in the fiscal year 2025-2026. This development has led to a surge in investor interest, with many analysts and market experts projecting further gains for SBI shares.
One such analyst is Gaurav Narendra Puri, who has been monitoring the technical and fundamental indicators of SBI shares closely. According to Puri, the building momentum in SBI shares suggests that the stock is poised for further upside. In an interview with a leading financial publication, Puri shared his projection of a target price of up to ₹850 for SBI shares.
So, what are the technical and fundamental indicators that are driving Puri’s optimism about SBI shares? Let’s dive deeper to understand the reasons behind his forecast.
Technical Indicators
Puri’s technical analysis of SBI shares reveals several bullish signals that suggest a strong upward trend. One of the key indicators is the Relative Strength Index (RSI), which has been trending upward since the beginning of the year. The RSI measures the speed and change of price movements, and a reading above 70 indicates overbought conditions. However, Puri notes that the RSI has not reached the overbought zone, indicating that the upward momentum is still sustainable.
Another important technical indicator is the Moving Average Convergence Divergence (MACD) indicator. The MACD has been trending upward since the beginning of the year, and the signal line has recently crossed above the MACD line, indicating a buy signal.
Fundamental Indicators
In addition to the technical indicators, Puri has also analyzed the fundamental strengths of SBI shares. One of the key factors driving his optimism is the bank’s strong financial position. SBI has been consistently reporting strong profits and has a robust capital adequacy ratio, which indicates its ability to withstand potential risks.
Another important fundamental factor is the bank’s growth prospects. SBI has been expanding its presence in the digital banking space, and its efforts to improve customer experience have been paying off. The bank has also been aggressively expanding its presence in the corporate banking segment, which is expected to drive growth in the coming years.
Valuation
Puri’s target price of up to ₹850 for SBI shares is based on his analysis of the bank’s valuation. SBI shares are currently trading at a price-to-book (P/B) ratio of around 1.8, which is lower than the industry average. Puri believes that the bank’s strong financial position and growth prospects justify a higher valuation, and his target price of up to ₹850 reflects this.
Conclusion
Gaurav Narendra Puri’s technical and fundamental analysis of SBI shares suggests that the stock is poised for further gains. The building momentum in SBI shares, driven by strong technical and fundamental indicators, is likely to continue in the coming months. Puri’s projection of a target price of up to ₹850 for SBI shares is based on his analysis of the bank’s strong financial position, growth prospects, and valuation.
While no investment decision should be taken solely based on the analysis of one individual, Puri’s views on SBI shares are certainly worth considering. As the bank prepares to raise up to $3 billion via public or private offerings in the fiscal year 2025-2026, investors are likely to be watching the developments closely.
