SBI share price: Stock to get rich by! Set to give colossal 26% returns

SBI share price has shot up from Rs 290 odd levels to Rs 335 level. The reason for this rise in SBI shares is because of the strong fundamentals of the bank and domestic institutional investors showing faith in the PSU bank. According to the stock market investors, SBI share price is expected to continue its rally and in the long-term perspective, SBI share price is expected to hit Rs 425 per stock levels. Clearly, this is a stock to get rich by.

SBI shares deviation in the last three years:

In a detailed report by Motilal Oswal, it has been said that after putting up a sub-optimal performance over the last few years, SBI appears well-positioned to report a strong uptick in earnings. With the overhang on Essar resolution getting clear, recoveries for the bank are expected to be robust at near Rs 120 billion (90 per cent of exposure). This will enable it to further improve upon the PCR. Even at the core earnings level, we estimate SBI to report a 19 per cent CAGR in PPoP over FY19-21." Motilal Oswal has revised its target for SBI shares from mid-term to long-term and the new target given is Rs 425.

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Speaking on SBI stock outlook, from a technical perspective, Simi Bhaumik, a SEBI registered technical equity analyst said, "Overall SBI shares are highly bullish. On technical charts, the SBI shares are trading in the range of Rs 325 per stock levels to Rs 365 per stock levels. My advice to the share market investors is to buy SBI stock on any dip of Rs 10 to Rs 12 and book profit at around Rs 360 per stock levels if the share market investor has a short-term investment horizon." Asked about the time in which this SBI stock price target will be hit Bhaumik said that the SBI share price will hit Rs 360 per stock target in one month. She said that after breaking Rs 365 per stock levels, the SBI shares will soon hit Rs 385 to Rs 390 per stock levels. However, she advised stock market investors to maintain the stop loss at Rs 320 while taking buy position in the SBI shares at current levels of Rs 335.