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Team Research
EUR 120.00 For Business Accounts Only

MOSL: Morning India (5/August/21): 1. State Bank of India (Gaining momentum in earnings); 2. Bulls and Bear; 3. Bharti Airtel; 4. Titan Company; 5. Hindalco; 6. Godrej Consumer; 7. Tata Consumer; 8. Bosch

MOrning India (5/August/21): 1. State Bank of India (Gaining momentum in earnings); 2. Bulls and Bear; 3. Bharti Airtel; 4. Titan Company; 5. Hindalco; 6. Godrej Consumer; 7. Tata Consumer; 8. Bosch

 

Today’s top research idea

State Bank of India: Gaining momentum in earnings; asset quality outlook strong

  • State Bank of India (SBIN) reported a steady quarter, with an earnings beat of 12% on MOSLE. This was aided by controlled provisions despite a challenging environment. Core operating performance was in-line.
  • Asset quality ratios deteriorated marginally on elevated slippage in Retail/SME. However, the management clarified that slippage worth ~INR48b has already been recovered/upgraded in July'21. Furthermore, the total restructured book remained in check, while SMA 1/2 (exposure of >INR50m) was stable QoQ at INR113b (~0.5% of loans).
  • The bank is gaining momentum in earnings every quarter. Thus, we estimate SBI to deliver FY22/FY23 RoE of 13.1%/14.6%, even as we build in credit cost of 1.6%/1.3% for FY22E/FY23E. Maintain BUY, with revised TP of INR600 (1.4x FY23E ABV + INR193 from subs).

 

Piping hot news

Kumar Mangalam Birla steps down as non-executive chairman of Vodafone Idea

  • Kumar Mangalam Birla has stepped down as non-executive director and non-executive chairman of Vodafone Idea, the company said on Wednesday. Himanshu Kapania, a nominee of the Aditya Birla Group, has been appointed as the non-executive chairman, Vodafone Idea Ltd (VIL) said. The changes come at a time when VIL is struggling to stay afloat.
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