SBI Cards, SBI Life Stocks to Buy: After the June quarter results, the fundamentals of some companies are looking strong and their shares are expected to rally further.
SBI Life & SBI Cards Stocks to Buy: There is a good opportunity to earn in 2 subsidiaries of SBI, the country’s largest government bank. Veteran brokerage houses are advising to invest in SBI Life Insurance and SBI Cards. After the June quarter results, their fundamentals are looking strong and further rally is expected in their shares. The brokerage house says that both the companies have shown growth in the June quarter, their performance has been better than expected. This growth momentum is expected to continue in the future as well.
SBI Life Insurance
Brokerage house Yes Securities has advised to invest in SBI Life Insurance and has given a target of Rs 1675. In terms of current price of Rs 1191, it can get 41 percent return. The brokerage says that the company has surprised on the margin front. VNB margin has been better due to change in product mix.
Brokerage house Motilal Oswal has also advised to invest in SBI Life Insurance and has given a target of Rs 1500. In terms of current price of Rs 1191, it can get 26 percent return. The company has had better results in the June quarter. There has been 80 percent growth in APE on an annual basis and 132 percent growth in VNB. VNB margin has increased by 665bp on YoY basis. Despite the volatility in the capital market, ULIPs have grown by 33% on an annual basis. The brokerage estimates that APE may grow at 27 per cent CAGR during FY22-24.
Brokerage house MK Global has recommend to invest in SBI Life with a target of Rs 1710. In terms of current price of Rs 1191, it can get 44% return. The brokerage says that the all-round performance of the company has been better. The company has performed well on the growth and margin front. This trend is expected to continue in the future as well.
SBI Cards
Brokerage house Yes Securities has recommended investing in SBI Cards with a target of Rs 1,260. In terms of current price of Rs 929, it can get 36 percent return. The brokerage says that the overall performance of the company has been strong. The momentum is expected to continue in the coming quarter. The brokerage has raised earnings estimates for FY23/24 by 7 per cent and 2 per cent. The RoA/RoE during FY23-24 is estimated to be 6 per cent and 26 per cent.
Brokerage house Motilal Oswal has recommended investing in SBI Cards with a target of Rs 1,100. In terms of current price of Rs 929, it can get 18 percent return. The brokerage says that the company’s performance in every segment has been as expected. Margin is stable on a quarterly basis. The growth momentum is expected to continue in the coming days.
