>STATE BANK OF INDIA (MORGAN STANLEY)

Research Tactical Idea

We believe the share price will rise in absolute terms over the next 30 days.

This is because the stock has traded off recently, making short term valuation much more compelling. This follows our recent upgrade of the stock to EW. Moreover, earnings yesterday were a mixed bag. Non interest income and subsidiaries performance were clear positives. However, NIM and asset quality progression were negatives. Given the recent underperformance, we think the stock may do well in the near term - hence, for a short-term trade, we would be buyers of SBI.

We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the scenario.

Stock Rating: Equal-weight
Industry View: In-Line