Motilal Oswal's research report on State Bank of India
2QFY24 consolidated revenue grew 22% YoY to INR88.4b and consolidated PAT (post minority) grew 44% YoY to ~INR7.1b. ABCL had raised equity capital of ~INR30b in Jun’23. The company further shared that it has infused equity capital of ~INR7.5b in the NBFC. It added ~ 72 branches in 2QFY24, taking the total branch count to 1,403. The management has exhibited great agility and a majority of its FY24 targets have already been achieved. We estimate further improvement in operating metrics in 2HFY24.
Outlook
We broadly maintain our estimates as higher wage provisioning gets offset by controlled credit costs. We estimate FY25E RoA/RoE of 1.1%/18.3%. Reiterate BUY rating with an unchanged TP of INR700 (based on 1.1x FY25E ABV + INR202 from subs).
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