The stock of the country's largest bank SBI can become a multibagger in the coming days. If you look at its return trend in the last few years, you will find that its investors have earned handsomely.
State Bank of India (SBI) stock may soon turn into a multibagger stock. The testimony of this is given by the returns received on the shares of the bank in the past years. The stock of the country's largest bank SBI has given a return of more than 200 percent in the last 3 years, whereas within a year its return has been around 30 percent.
The share price of State Bank of India was just around Rs 184 3 years ago, whereas now it has reached Rs 571. This is a return of about 234 per cent, while SBI investors have earned a profit of about Rs 400 per share.
Similarly, if we look at the return of only one year on SBI's share, then a year ago the share price of the bank was Rs 441, whereas now it is at Rs 571. In this way, investors have got a return of about 30 percent or Rs 130 on each share in a year itself.
SBI stock can go up to 750
The share of State Bank of India can touch the level of Rs 750 in the year 2023. Many brokerage firms have estimated the same target price for SBI. If this happens, then in just 4 years, SBI's stock will become a multibagger.
If a person would have invested Rs 1 lakh in SBI shares at Rs 184 in the year 2020, he would now get Rs 3.10 lakh. On the other hand, if it reaches the level of Rs 750 in 2023, then the return of the same shareholder will be Rs 4.07 lakh.
A strong reason behind the expectation of SBI share price reaching Rs 750 is its 52 week high (52W High) of Rs 629.55.
4 big reasons to hit SBI
Brokerage firm KR Choksi has also listed 4 major reasons behind giving a target price of Rs 750 to SBI shares.
SBI has a wide range of products. At the same time, due to branches, joint ventures, subsidiaries and associate companies, it also has access to a large customer base.
There is no dearth of capital with the bank, hence its risk appetite is quite high despite the uncertainty in the market.
SBI is the market leader in loan, retail and digital banking.
SBI has strong brand equity, pan India and overseas reach and the advantage of being the best franchisee in the market.
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