State Bank of India stocks: Buy State Bank of India, target price Rs 675: JM Financial

valuation method

Its subsidiaries like HDFC Bank, HDFC Life, HDFC AMC, etc operate in various business segments. To value Reliance Industries, it is better to value each segment individually and then add the valuation of three segments to get the total intrinsic value. I am Mechanical Engineer with 43 years of experience and member of The Institution of Engineers and wish to practice as Govt. Please guide how to proceed, which forms to be filled and where to be submitted. That his performance is such that his name should not remain on the register of valuers, satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as it thinks fit to make. For the purposes of this rule, ‘valuation date’ means the date on which the estimate of value is applicable.

We expect earning per share to increase by 24.4 per cent in FY23E and by 19.1 per cent in FY24E. Retail's revenue momentum would continue with operating leverage expected to drive margins, while Jio is expanding its 5G coverage (pan-India by Dec-23) with fiber also scaling up. While net debt has increased, it is still less than the annual Ebitda runrate. Berkshire built its stake in Citigroup in the quarter ended March 31, taking advantage of a 5% pullback in shares during the period as U.S. banks' stocks slid on fears of slowing economic growth. When an analyst or a market participant tracks a huge company like ITC, which has a diversified business, they use a valuation method called sum-of-the-parts or SOTP valuation.

  • We recommend investors to buy the stock at Rs 101 and add more on dips at Rs 87 (22.0x FY24E EPS) for a target price of Rs 123 till next Diwali.
  • Now, his Kingdom Holding investment firm counts Saudi Arabia's Public Investment Fund as a minority shareholder and the powerful sovereign wealth fund is unlikely to sit on the sidelines.
  • The price to earnings multiple of conglomerates tends to be lower than companies that focus on a single business.
  • So, it is not feasible to apply the same yardstick for every business.
  • Sum of the parts valuation is one of the valuation technique of calculating intrinsic value of a company/ business.

However, growth in EBITDA was relatively lower at 24.8%, while EBITDA margins contracted 76bps YoY to 7.6%, led by a sharp margin erosion of 616bps in unitary cooling products. At times a company as a whole may appear to have a lot of problems but if you break up into different businesses and subsidiaries then the stock should be a lot better priced. For example, SBI substantially owns SBI life with a market cap of Rs.90,000 crore, substantially owns SBI Cards with a market cap of Rs.70,000 crore and full owns SBI MF with an approximate indicative market cap of Rs.75,000 crore.

How to value stocks using SOTP valuation method?

An application for registration as valuer shall be made in Form No. 17.1 by individuals and firms and Form No. 17.2 by others, along with the fee as provided. Sufficient levers available to keep margins in per cent band. Infosys has raised revenue growth guidance to per cent from per cent earlier for FY23.


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Why are analysts saying that SBI looks attractive on SOTP basis? What exactly does this SOTP basis mean?

Connect to our advisors to seek assistance and meet set financial goals. SMS Alerts on registered mobile number for all the transactions done through Cards , Internet Banking, Mobile Banking, CDM, etc. Visit any nearest PNB branch and get your Mobile Number registered in the account. Integrated & complex transformation deals are positives & will power industry-leading growth. Infosys can benefit from increased focus on cost takeout priorities by clients. BCL is committed to increasing its annual cement production capacity to approximately 30 million tons by 2030.

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In the case of merchant banker the valuation report shall be signed by the qualified person. We recommend investors to buy the stock at Rs 858 and add more on dips at Rs 774 (20.5x FY24E EPS) for a target price of Rs 1022 (27.0x FY24E EPS) till next Diwali. We recommend investors to buy the stock at Rs 896 and add more on dips at Rs 784 (6.3x EV/EBITDA FY24E, $63.9/T FY24E) for a target price of Rs 1069 (7.7x EV/EBITDA FY24E, $78.8/T FY24E) till next Diwali. We recommend investors to buy the stock at Rs 101 and add more on dips at Rs 87 (22.0x FY24E EPS) for a target price of Rs 123 till next Diwali.

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The company has maintained its revenue growth guidance of 15 per cent and EBITDA margin guidance of per cent for FY23E. The chips supply situation is better now than in the previous year. Therefore, we expect FY23E revenue growth and margin to surpass the given guidance. ICICI Securities Ltd | Retail Equity Research Topline growth of ~9% YoY was largely impacted by the UCP division where segment revenue declined ~3% YoY. The tepid performance was led by poor festive demand and failure of second summer.


A registered valuer aggrieved by an order passed for removal of name may prefer an appeal in accordance with the procedure laid down in the respective Acts, regulations or bye-laws governing the respective professional. An appeal against the order of the Central Government shall be preferred to the Tribunal. A registered valuer shall make a valuation of any asset as on valuation date, in accordance with the applicable standards, if any, as may be stipulated for this purpose. Section 247 of the Companies Act, 2013 contains provisions exclusively regarding registered valuers.

If you add these big group companies together it comes to around Rs.2,35,000 crore. If you add up the other smaller businesses, then the valuation of these subsidiaries would be closer to Rs.2,70,000 crore. But the whole of SBI is trading at around Rs.3,00,000 crore, which means that you are getting the entire banking business at just Rs.30,000 crore. That is why it is said that the sum of total parts is more than whole. Undervaluation of the shares of a conglomerate is a perennial problem. This refers to a situation when the stock market values the assets of the diversified company at less than the estimated sum of the part.

Stifel resumes Alphabet coverage at Buy, sees nearly 30% upside ... -

Stifel resumes Alphabet coverage at Buy, sees nearly 30% upside ....

Posted: Tue, 21 Mar 2023 12:49:00 GMT [source]

Investment icon Bill Miller says investors should not just buy companies that are cheap statistically but should also look for undervalued companies that can actually earn decent returns and happen to be cheap temporarily for a variety of reasons. I have not been the guy who says that I have a dogmatic view. In 2000, I made maximum money in tech but Buffett avoided tech at that point of time. JM Financial has buy call on State Bank of India with a target price of Rs 675. The current market price of State Bank of India is Rs 546.3. When autocomplete results are available use up and down arrows to review and enter to select.

principles of successful investing from the legendary Roy R. Neuberger

Registered Valuer is one among the many new concepts introduced by the Companies Act, 2013 to provide for a proper mechanism for valuation of the various assets and liabilities related to a company and to standardize the procedure thereof. It also throws open a new area of professional opportunity. Please don’t give any of your personal confidential credentials like PAN, Date of Birth, Account Number, Debit or Credit Card Number & its Expiry Date, Father/Mother’s Name, User ID, Password, PIN, CVV, OTP etc.upon receiving the Phishing, Vishing or Smishing. We assume RIL will list its retailing and telecommunications over the next 2-3 years. We assume all the three members of the next generation will be present on the board of RIL while actively managing a particular vertical at the same time.


Only sotp meaning material that’s relevant to the topic being discussed. Please help us protect Glassdoor by verifying that you're a real person. If you continue to see this message, please emailto let us know you're having trouble. Promoters held 57.5 per cent stake in the company as of December 31, 2022, while FIIs owned 10.09, DIIs 25.33 per cent.

  • On the other hand, standalone financial statements just include the performance of core company without including subsidiary’s performance.
  • Several businesses operate as a cluster rather than a single entity.
  • But the whole of SBI is trading at around Rs.3,00,000 crore, which means that you are getting the entire banking business at just Rs.30,000 crore.
  • Entails valuation on the basis of recent investment received in the company from an independent investor.
  • It may be different from the date of the valuation report or the date on which the investigations were undertaken or completed.

15 February 2019 Sales grew 9% YoY to INR14.8b, marginally below our estimate of INR15.4b, impacted by lower EMP sales (INR8.7b v/s our estimate of INR9.2b). EBITDA declined 3% YoY to INR1.2b estimate of 8.2% due to weak UCP margins. PAT declined 8% YoY to INR0.9b, below our estimate of INR1b. VOLT booked a loss of INR308m pertaining to its JV business with BEKO. The segmental margin shrank 450bp take price hikes, despite a rise in RM cost and INR depreciation.


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