Aniket Kangane BSE: 500112 | NSE:SBIN

FINANCIAL
MODELING
REPORT
(A Comprehensive DCF and Comparable Comps Valuation)
STATE BANK OF INDIA - One Page Profile
Founded in 1955, the State Bank of India (SBI) is a premier financial services institution headquartered in India.
SBI operates as one of the largest and most renowned banks in the country, providing an extensive range of
financial products and services to individuals and businesses. The bank's offerings include retail banking,
corporate banking, insurance, investment banking, asset management, and wealth management services.

INR (Crores)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Share Price - 5Y
Total Sales 3,68,011 3,85,338 4,06,973 4,73,378 1000
Sales Growth (y-o-y) 11.29% 4.71% 5.61% 16.32%
800
Gross Profit 3,18,028 3,29,877 3,44,296 4,10,138
GP Margins (%) 86.42% 85.61% 84.60% 86.64% 600
EBITDA Margin (%) 53.02% 49.96% 51.51% 56.84%
400
EBIT Margin (%) 71.53% 67.21% 70.68% 75.38%
Net Profit Margins(%) 4.94% 6.30% 8.93% 11.95% 200
Earnings Per Share (In Rs.) 20.37 27.21 40.74 63.37
EPS Growth (y-o-y) 492.26% 33.58% 49.74% 55.57% 0
2020 2021 2022 2023 2024

Key Financial Ratios Mar-20 Mar-21 Mar-22 Mar-23 Volume - 5Y

Price to Earnings 8.89x 14.51x 12.45x 8.40x 2500
EV/EBITDA 18.09x 21.43x 21.84x 19.10x 2000
EV/Sales 13.08x 14.84x 15.79x 14.65x 1500
Price to Book value 0.70x 1.18x 1.44x 1.30x 1000
Return on Equity (%) 7.24% 8.81% 11.90% 15.76% 500
Return on Capital Employed (%) 4.96% 4.27% 4.25% 4.96% 0
2020 2021 2022 2023 2024
(In Millions)
Top 10 Shareholders Shares Holding (%) Market value Shareholding Pattern
President Of India 5079.78 57.5 42,25,357
Life Insurance Corporation Of India 788.33 8.9 6,55,737 Public 7.40%
Sbi Mutual Fund Schemes 262.22 3.0 2,18,115
Hdfc Mutual Fund Schemes 154.78 1.8 1,28,749 DIIs 23.96%
Nps Trust Schemes 118.95 1.4 98,944
Nippon Life India Mutual Fund Scheme 94.12 1.1 78,291
FIIs 11.09%
Government Of Singapore 93.40 1.1 77,689
Icici Prudential Mutual Fund Schemes 89.52 1.0 74,460
Promoters 57.54%
The Bank Of New York Mellon 95.89 0.0 79,760
Vanguard Total International Stock Index Fund 76.71 1.2 63,804
0% 20% 40% 60% 80%

Future Vision
• Expand Financial Inclusion: SBI could aim to reach a significantly larger portion of the unbanked population in India, promoting financial literacy
and access to basic banking services.
• Drive Digital Transformation: The bank might prioritize further development of its digital banking platform, offering innovative financial products
and a seamless user experience.
• Become a Global Leader: SBI could aim to expand its international presence, becoming a major player in global finance.
• Focus on Sustainability: The bank might set goals for sustainable financing, supporting renewable energy projects and environmentally friendly
businesses.
• Enhance Customer Centricity: SBI could prioritize improving customer satisfaction through personalized financial solutions and exceptional
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

HISTORICAL FINANCIAL STATEMENT

Income Statement
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales ₹ 2,57,289.5 ₹ 2,73,461.1 ₹ 2,98,640.3 ₹ 3,06,527.7 ₹ 3,30,687.4 ₹ 3,68,010.7 ₹ 3,85,337.9 ₹ 4,06,973.1 ₹ 4,73,378.1
Sales Growth - 6.29% 9.21% 2.64% 7.88% 11.29% 4.71% 5.61% 16.32%

COGS ₹ 31,853.7 ₹ 33,330.4 ₹ 36,571.7 ₹ 36,389.1 ₹ 44,862.5 ₹ 49,983.0 ₹ 55,460.6 ₹ 62,677.0 ₹ 63,239.7
COGS % Sales 12.38% 12.19% 12.25% 11.87% 13.57% 13.58% 14.39% 15.40% 13.36%

Gross Profit ₹ 2,25,435.9 ₹ 2,40,130.8 ₹ 2,62,068.6 ₹ 2,70,138.6 ₹ 2,85,824.9 ₹ 3,18,027.7 ₹ 3,29,877.3 ₹ 3,44,296.1 ₹ 4,10,138.5
Gross Profit % Sales 87.62% 87.81% 87.75% 88.13% 86.43% 86.42% 85.61% 84.60% 86.64%

Selling & General Expenses 64,821.2 76,654.4 1,09,094.4 1,32,675.5 1,21,241.0 1,22,925.7 1,37,360.1 1,34,671.9 1,41,063.5
S&G Exp % Sales 25.19% 28.03% 36.53% 43.28% 36.66% 33.40% 35.65% 33.09% 29.80%

EBITDA ₹ 1,60,614.7 ₹ 1,63,476.4 ₹ 1,52,974.2 ₹ 1,37,463.1 ₹ 1,64,583.8 ₹ 1,95,102.0 ₹ 1,92,517.2 ₹ 2,09,624.2 ₹ 2,69,075.0
EBITDA Margins 62.43% 59.78% 51.22% 44.85% 49.77% 53.02% 49.96% 51.51% 56.84%

Interest ₹ 1,33,178.6 1,43,047.4 1,49,114.7 1,46,603.0 1,55,867.5 ₹ 1,61,123.8 ₹ 1,56,010.2 ₹ 1,56,194.3 ₹ 1,89,980.8
Interest % Sales 51.76% 52.31% 49.93% 47.83% 47.13% 43.78% 40.49% 38.38% 40.13%

Depreciation ₹ 1,581.5 ₹ 2,252.2 ₹ 2,914.7 ₹ 3,105.1 ₹ 3,495.9 ₹ 3,661.6 ₹ 3,711.1 ₹ 3,691.3 ₹ 3,695.6
Depreciation % Sales 0.61% 0.82% 0.98% 1.01% 1.06% 0.99% 0.96% 0.91% 0.78%

EBT ₹ 25,854.6 ₹ 18,176.8 ₹ 944.8 (₹ 12,244.9) ₹ 5,220.5 ₹ 30,316.6 ₹ 32,796.0 ₹ 49,738.6 ₹ 75,398.6
EBT % Sales 10.05% 6.65% 0.32% -3.99% 1.58% 8.24% 8.51% 12.22% 15.93%

Tax ₹ 8,337.2 ₹ 5,433.5 ₹ 1,335.5 (₹ 8,057.5) ₹ 2,151.4 ₹ 12,139.8 ₹ 8,516.3 ₹ 13,382.5 ₹ 18,840.1
Effective Tax Rate 32.25% 29.89% 141.35% 65.80% 41.21% 40.04% 25.97% 26.91% 24.99%

Net Profit ₹ 17,517.4 ₹ 12,743.3 (₹ 390.7) (₹ 4,187.4) ₹ 3,069.1 ₹ 18,176.8 ₹ 24,279.7 ₹ 36,356.2 ₹ 56,558.4
Net Profit Margins 6.81% 4.66% -0.13% -1.37% 0.93% 4.94% 6.30% 8.93% 11.95%

No. Of Equity Shares ₹ 746.6 ₹ 776.3 ₹ 797.4 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5

Earnings Per Share ₹ 23.5 ₹ 16.4 (₹ 0.5) (₹ 4.7) ₹ 3.4 ₹ 20.4 ₹ 27.2 ₹ 40.7 ₹ 63.4
EPS Growth % -30.04% -102.98% 857.63% -173.29% 492.26% 33.58% 49.74% 55.57%

Dividend Per Share ₹ 3.5 ₹ 2.6 ₹ 2.6 - - - ₹ 4.0 ₹ 7.1 ₹ 11.3

Dividend Payout Ratio 14.92% 15.84% -530.66% - - - 14.70% 17.43% 17.83%

Retained Earning 85.08% 84.16% - - 100.00% 100.00% 85.30% 82.57% 82.17%

Balance Sheet
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Equity Share ₹ 746.6 ₹ 776.3 ₹ 797.4 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5 ₹ 892.5
Reserves ₹ 1,60,641.0 ₹ 1,79,816.1 ₹ 2,16,394.8 ₹ 2,29,429.5 ₹ 2,33,603.2 ₹ 2,50,167.7 ₹ 2,74,669.1 ₹ 3,04,695.6 ₹ 3,58,038.9
Borrowings ₹ 22,97,624.3 ₹ 26,15,257.0 ₹ 29,36,176.3 ₹ 30,91,257.6 ₹ 33,54,288.7 ₹ 36,07,061.3 ₹ 41,49,127.5 ₹ 45,36,570.4 ₹ 49,89,687.5
Other Liabilities ₹ 2,40,148.7 ₹ 2,76,472.2 ₹ 2,88,391.0 ₹ 2,94,859.6 ₹ 2,99,675.7 ₹ 3,39,364.3 ₹ 4,20,925.8 ₹ 5,18,719.4 ₹ 6,05,795.7
Total Liabilities ₹ 26,99,160.5 ₹ 30,72,321.5 ₹ 34,41,759.5 ₹ 36,16,439.2 ₹ 38,88,460.0 ₹ 41,97,485.7 ₹ 48,45,614.8 ₹ 53,60,877.8 ₹ 59,54,414.5

Fixed Asset Net Block ₹ 12,924.2 ₹ 15,415.2 ₹ 51,189.2 ₹ 42,034.8 ₹ 39,940.8 ₹ 39,608.4 ₹ 41,600.4 ₹ 41,032.5 ₹ 45,879.7
Capital Work in Progress ₹ 400.3 ₹ 785.7 ₹ 694.9 ₹ 925.1 ₹ 762.3 ₹ 469.8 ₹ 116.4 ₹ 27.6 ₹ 66.0
Investments ₹ 6,73,507.5 ₹ 8,07,374.6 ₹ 10,27,280.9 ₹ 11,83,794.2 ₹ 11,19,269.8 ₹ 12,28,284.3 ₹ 15,95,100.3 ₹ 17,76,489.9 ₹ 19,13,107.9
Other Assets ₹ 18,23,847.5 ₹ 20,44,186.5 ₹ 20,89,397.3 ₹ 21,94,396.0 ₹ 25,02,974.9 ₹ 26,74,808.0 ₹ 28,61,090.7 ₹ 31,44,422.8 ₹ 36,77,049.0
Total Non Current ₹ 25,10,679.5 ₹ 28,67,762.0 ₹ 31,68,562.4 ₹ 34,21,150.1 ₹ 36,62,947.8 ₹ 39,43,170.5 ₹ 44,97,907.8 ₹ 49,61,972.7 ₹ 56,36,102.6

Cash & Bank ₹ 1,88,481.1 ₹ 2,04,559.5 ₹ 2,73,197.2 ₹ 1,95,289.1 ₹ 2,25,512.3 ₹ 2,54,315.3 ₹ 3,47,707.0 ₹ 3,98,905.1 ₹ 3,18,311.9
Total Current Asset ₹ 1,88,481.1 ₹ 2,04,559.5 ₹ 2,73,197.2 ₹ 1,95,289.1 ₹ 2,25,512.3 ₹ 2,54,315.3 ₹ 3,47,707.0 ₹ 3,98,905.1 ₹ 3,18,311.9

Total Assets ₹ 26,99,160.5 ₹ 30,72,321.5 ₹ 34,41,759.5 ₹ 36,16,439.2 ₹ 38,88,460.0 ₹ 41,97,485.7 ₹ 48,45,614.8 ₹ 53,60,877.8 ₹ 59,54,414.5

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

Cash Flow Statement

Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Profit from operations ₹ 54,773.0 ₹ 62,516.0 ₹ 69,238.0 ₹ 66,624.0 ₹ 68,365.0 ₹ 76,743.0 ₹ 85,734.0 ₹ 84,334.0 ₹ 1,06,669.0
Loans Advances (₹ 1,36,133.0) (₹ 2,13,161.0) (₹ 82,543.0) (₹ 1,34,190.0) (₹ 3,21,989.0) (₹ 1,91,306.0) (₹ 1,56,020.0) (₹ 3,09,323.0) (₹ 4,84,653.0)
Operating investments (₹ 91,344.0) (₹ 1,36,225.0) (₹ 2,21,334.0) (₹ 1,64,770.0) ₹ 63,373.0 (₹ 1,00,670.0) (₹ 3,68,800.0) (₹ 1,83,900.0) (₹ 1,41,597.0)
Operating borrowings ₹ 19,762.0 ₹ 1,10,598.0 (₹ 22,744.0) ₹ 44,832.0 ₹ 41,291.0 (₹ 89,343.0) ₹ 90,439.0 ₹ 11,808.0 ₹ 54,584.0
Deposits ₹ 2,14,108.0 ₹ 2,00,897.0 ₹ 3,45,953.0 ₹ 1,21,392.0 ₹ 2,18,363.0 ₹ 3,33,620.0 ₹ 4,41,171.0 ₹ 3,72,079.0 ₹ 3,81,125.0
Other WC items (₹ 27,351.0) (₹ 649.0) (₹ 9,787.0) (₹ 22,385.0) (₹ 31,672.0) ₹ 9,745.0 ₹ 1,216.0 ₹ 91,720.0 ₹ 15,182.0
Working capital changes (₹ 20,958.0) (₹ 38,540.0) ₹ 9,546.0 (₹ 1,55,122.0) (₹ 30,634.0) (₹ 37,955.0) ₹ 8,004.0 (₹ 17,615.0) (₹ 1,75,359.0)
Direct taxes (₹ 7,517.0) (₹ 9,498.0) (₹ 1,378.0) (₹ 8,010.0) (₹ 8,175.0) (₹ 14,859.0) (₹ 3,819.0) (₹ 9,024.0) (₹ 17,324.0)
Cash from Operating Activity ₹ 26,298.0 ₹ 14,478.0 ₹ 77,405.0 (₹ 96,507.0) ₹ 29,556.0 ₹ 23,930.0 ₹ 89,921.0 ₹ 57,694.0 (₹ 86,014.0)
Fixed assets purchased (₹ 3,449.0) (₹ 3,776.0) (₹ 4,424.0) - (₹ 3,006.0) (₹ 3,065.0) (₹ 3,910.0) (₹ 3,305.0) -
Fixed assets sold - - - ₹ 6,602.0 - - ₹ 82.0 ₹ 254.0 -
Dividends received ₹ 17.0 ₹ 8.0 ₹ 4.0 ₹ 15.0 ₹ 12.0 ₹ 15.0 ₹ 3.0 ₹ 3.0 ₹ 3.0
Invest in subsidiaries - - - - - - (₹ 3,177.0) (₹ 583.0) -
Investment in group cos - ₹ 88.0 - - - - - - -
Redemp n Canc of Shares - ₹ 12.0 ₹ 1,586.0 ₹ 5,239.0 ₹ 466.0 ₹ 5,574.0 ₹ 3,520.0 ₹ 12.0 -
Acquisition of companies - - - - (₹ 64.0) (₹ 6,031.0) (₹ 254.0) - -
Other investing items ₹ 7.0 ₹ 922.0 (₹ 1,738.0) ₹ 1,196.0 ₹ 2,810.0 ₹ 2,953.0 ₹ 66.0 ₹ 966.0 (₹ 969.0)
Cash from Investing Activity - (₹ 3,425.0) (₹ 2,746.0) (₹ 4,572.0) ₹ 13,052.0 ₹ 218.0 (₹ 554.0) (₹ 3,670.0) (₹ 2,653.0) (₹ 966.0)
Proceeds from shares - ₹ 5,384.0 ₹ 5,675.0 ₹ 23,782.0 - - ₹ 27,431.0 ₹ 14,074.0 ₹ 19,533.0
Proceeds from borrowings - - - - ₹ 3,378.0 ₹ 8,496.0 - - -
Interest paid fin (₹ 4,895.0) (₹ 4,798.0) (₹ 5,296.0) (₹ 4,554.0) (₹ 4,222.0) (₹ 4,908.0) (₹ 5,069.0) (₹ 5,411.0) (₹ 6,325.0)
Dividends paid (₹ 1,236.0) (₹ 3,059.0) (₹ 2,337.0) (₹ 2,416.0) - - - (₹ 3,570.0) (₹ 6,337.0)
Share application money ₹ 2,970.0 - - - - - - - -
Other financing items ₹ 1,608.0 ₹ 6,820.0 (₹ 2,238.0) (₹ 11,265.0) ₹ 1,292.0 ₹ 1,842.0 (₹ 15,219.0) (₹ 8,938.0) (₹ 485.0)
Cash from Financing Activity - (₹ 1,553.0) ₹ 4,347.0 (₹ 4,196.0) ₹ 5,547.0 ₹ 448.0 ₹ 5,430.0 ₹ 7,143.0 (₹ 3,845.0) ₹ 6,386.0

Net Cash Flow ₹ 21,320.0 ₹ 16,079.0 ₹ 68,637.0 (₹ 77,908.0) ₹ 30,222.0 ₹ 28,806.0 ₹ 93,394.0 ₹ 51,196.0 (₹ 80,594.0)
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

COMMON SIZE STATEMENT

Income Statement
Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Other Mfr. Exp 0.35% 0.36% 0.38% 0.42% 0.42% 0.42% 0.40% 0.42% 0.37%
Employee Cost 14.96% 14.75% 15.49% 15.47% 17.29% 18.11% 19.54% 21.19% 17.65%
Selling and admin 4.49% 4.42% 4.60% 5.50% 5.06% 5.06% 5.05% 5.30% 4.91%
Other Expenses 26.68% 30.32% 42.74% 52.44% 42.80% 40.49% 44.34% 41.15% 35.29%
Other Income 23.71% 23.94% 29.59% 33.87% 30.54% 36.38% 38.55% 40.35% 34.93%
Depreciation 0.76% 1.02% 1.26% 1.36% 1.38% 1.36% 1.33% 1.27% 1.05%
Interest 64.04% 64.84% 64.71% 64.03% 61.53% 59.71% 56.10% 53.87% 54.15%
Profit before tax 12.43% 8.24% 0.41% -5.35% 2.06% 11.23% 11.79% 17.15% 21.49%
Tax 4.01% 2.46% 0.58% -3.52% 0.85% 4.50% 3.06% 4.62% 5.37%
Net profit 8.17% 5.54% 0.10% -1.99% 0.91% 7.33% 8.06% 12.20% 15.86%
Dividend Amount 1.26% 0.91% 0.90% 0.00% 0.00% 0.00% 1.28% 2.19% 2.87%
EBITDA 76.98% 73.86% 66.66% 59.87% 64.67% 72.89% 68.55% 71.95% 76.43%
-
Balance Sheet
Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.03% 0.03% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.01%
Reserves 5.95% 5.85% 6.29% 6.34% 6.01% 5.96% 5.67% 5.68% 6.01%
Borrowings 85.12% 85.12% 85.31% 85.48% 86.26% 85.93% 85.63% 84.62% 83.80%
Other Liabilities 8.90% 9.00% 8.38% 8.15% 7.71% 8.08% 8.69% 9.68% 10.17%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 0.48% 0.50% 1.49% 1.16% 1.03% 0.94% 0.86% 0.77% 0.77%
Capital Work in Progress 0.01% 0.03% 0.02% 0.03% 0.02% 0.01% 0.00% 0.00% 0.00%
Investments 24.95% 26.28% 29.85% 32.73% 28.78% 29.26% 32.92% 33.14% 32.13%
Other Assets 67.57% 66.54% 60.71% 60.68% 64.37% 63.72% 59.04% 58.65% 61.75%
Cash & Bank 6.98% 6.66% 7.94% 5.40% 5.80% 6.06% 7.18% 7.44% 5.35%
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

RATIO ANALYSIS
Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Trend Mean Median
Sales Growth - 6.29% 9.21% 2.64% 7.88% 11.29% 4.71% 5.61% 16.32% 7.99% 7.08%
EBITDA Growth - 1.78% -6.42% -10.14% 19.73% 18.54% -1.32% 8.89% 28.36% 7.43% 5.33%
EBT Growth - -29.70% -94.80% -1395.99% -142.63% 480.72% 8.18% 51.66% 51.59% -133.87% -10.76%
Net Profit Growth - -27.25% -103.07% 971.85% -173.29% 492.26% 33.58% 49.74% 55.57% 162.42% 41.66%
Dividend Growth - 74.29% 100.00% 0.00% 0.00% 0.00% 0.00% 177.50% 159.15% 63.87% 37.14%
Gross Margin 87.62% 87.81% 87.75% 88.13% 86.43% 86.42% 85.61% 84.60% 86.64% 86.78% 86.64%
EBITDA Margin 62.43% 59.78% 51.22% 44.85% 49.77% 53.02% 49.96% 51.51% 56.84% 53.26% 51.51%
EBIT Margin 61.81% 58.96% 50.25% 43.83% 48.71% 52.02% 49.00% 50.60% 56.06% 52.36% 50.60%
EBT Margin 10.05% 6.65% 0.32% -3.99% 1.58% 8.24% 8.51% 12.22% 15.93% 6.61% 8.24%
Net Profit Margin 6.81% 4.66% -0.13% -1.37% 0.93% 4.94% 6.30% 8.93% 11.95% 4.78% 4.94%
S&G Exp % Sales 25.19% 28.03% 36.53% 43.28% 36.66% 33.40% 35.65% 33.09% 29.80% 33.52% 33.40%
Depreciation & Sales 0.61% 0.82% 0.98% 1.01% 1.06% 0.99% 0.96% 0.91% 0.78% 0.90% 0.96%
Operating Income % Sales 61.81% 58.96% 50.25% 43.83% 48.71% 52.02% 49.00% 50.60% 56.06% 52.36% 50.60%
Return on Capital Employed 6.47% 5.77% 4.76% 4.05% 4.49% 4.96% 4.27% 4.25% 4.96% 4.89% 4.76%
Retained Earning 85.08% 84.16% 0.00% 0.00% 100.00% 100.00% 85.30% 82.57% 82.17% 68.81% 84.16%
Return on Equity % 10.85% 7.06% -0.18% -1.82% 1.31% 7.24% 8.81% 11.90% 15.76% 6.77% 7.24%
Self Sustained Growth Rate 9.24% 5.94% 0.00% 0.00% 1.31% 7.24% 7.52% 9.82% 12.95% 6.00% 7.24%
Interest Coverage Ratio 1.19x 1.13x 1.01x 0.92x 1.03x 1.19x 1.21x 1.32x 1.40x 1.15x 1.19x
Debtor Turnover Ratio 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x
Creditor Turnover Ratio 1.07x 0.99x 1.04x 1.04x 1.10x 1.08x 0.92x 0.78x 0.78x 0.98x 1.04x
Fixed Asset Turnover Ratio 19.91x 17.74x 5.83x 7.29x 8.28x 9.29x 9.26x 9.92x 10.32x 10.87x 9.29x
Capital Turnover Ratio 1.59x 1.51x 1.38x 1.33x 1.41x 1.47x 1.40x 1.33x 1.32x 1.42x 1.40x
CFO/Sales 10.22% 5.29% 25.92% -31.48% 8.94% 6.50% 23.34% 14.18% -18.17% 4.97% 8.94%
CFO/Total Assets 0.97% 0.47% 2.25% -2.67% 0.76% 0.57% 1.86% 1.08% -1.44% 0.43% 0.76%
CFO/Total Debt 1.14% 0.55% 2.64% -3.12% 0.88% 0.66% 2.17% 1.27% -1.72% 0.50% 0.88%
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

FORCASTING
Year Weight Year Sales Sales Growth Year Weight Year EBITDA EBITDA Growth
1 2015A 2,57,289.5 1 2015A 1,60,614.7
2 2016A 2,73,461.1 6.29% 2 2016A 1,63,476.4 1.78%
3 2017A 2,98,640.3 9.21% 3 2017A 1,52,974.2 -6.42%
4 2018A 3,06,527.7 2.64% 4 2018A 1,37,463.1 -10.14%
5 2019A 3,30,687.4 7.88% 5 2019A 1,64,583.8 19.73%
6 2020A 3,68,010.7 11.29% 6 2020A 1,95,102.0 18.54%
7 2021A 3,85,337.9 4.71% 7 2021A 1,92,517.2 -1.32%
8 2022A 4,06,973.1 5.61% 8 2022A 2,09,624.2 8.89%
9 2023A 4,73,378.1 16.32% 9 2023A 2,69,075.0 28.36%
10 2024F 4,69,459.1 -0.83% 10 2024F 2,41,909.8 -10.10%
11 2025F 4,94,455.3 5.32% 11 2025F 2,53,726.6 4.88%
12 2026F 5,19,451.4 5.06% 12 2026F 2,65,543.4 4.66%
13 2027F 5,44,447.6 4.81% 13 2027F 2,77,360.2 4.45%
14 2028F 5,69,443.7 4.59% 14 2028F 2,89,177.1 4.26%
15 2029F 5,94,439.8 4.39% 15 2029F 3,00,993.9 4.09%

Sales Growth EBITDA Growth

8,00,000
4,00,000
6,00,000
3,00,000
4,00,000
2,00,000
2,00,000
1,00,000
0
0
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024F
2025F
2026F
2027F
2028F
2029F

2024F
2025F
2026F
2027F
2028F
2029F
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
Year Weight Year EBT EBT Growth Year Weight Year 2023A EPS EPS Growth
1 2015A 25,854.6 1 2015A 23.5
2 2016A 18,176.8 -29.70% 2 2016A 16.4 -30.04%
3 2017A 944.8 -94.80% 3 2017A -0.5 -102.98%
4 2018A -12,244.9 -1395.99% 4 2018A -4.7 857.63%
5 2019A 5,220.5 -142.63% 5 2019A 3.4 -173.29%
6 2020A 30,316.6 480.72% 6 2020A 20.4 492.26%
7 2021A 32,796.0 8.18% 7 2021A 27.2 33.58%
8 2022A 49,738.6 51.66% 8 2022A 40.7 49.74%
9 2023A 75,398.6 51.59% 9 2023A 63.4 55.57%
10 2024F 58,393.9 -22.55% 10 2024F 47.2 -25.55%
11 2025F 65,046.0 11.39% 11 2025F 52.4 11.06%
12 2026F 71,698.1 10.23% 12 2026F 57.6 9.96%
13 2027F 78,350.2 9.28% 13 2027F 62.8 9.06%
14 2028F 85,002.3 8.49% 14 2028F 68.0 8.30%
15 2029F 91,654.4 7.83% 15 2029F 73.3 7.67%

EBT Growth EPS Growth

1,00,000 80
80,000
60
60,000
40
40,000
20,000 20
0 0
2024F
2025F
2026F
2027F
2028F
2029F
2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A

2015A
2016A
2017A
2018A
2019A
2020A
2021A
2022A
2023A
2024F
2025F
2026F
2027F
2028F
2029F

-20,000 -20
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

BETA REGRESSION
Regression Beta - 2 Years Weekly

STATE BANK OF INDIA Weekly Returns Nifty Returns Beta Drifiting

Date Closing Price Returns Closing Price Returns Levered Raw Beta 1.28
06-06-2022 445.6 16201.8 Raw Beta Weight 75.00%
13-06-2022 425.5 -4.51% 15293.5 -5.61% Market Beta 1
20-06-2022 438.2 3.00% 15699.3 2.65% Market Beta Weight 25.00%
27-06-2022 450.4 2.77% 15752.0 0.34%
04-07-2022 471.3 4.65% 16220.6 2.97% Adjusted Beta 1.21
11-07-2022 462.2 -1.93% 16049.2 -1.06%
18-07-2022 495.6 7.22% 16719.4 4.18%
25-07-2022 509.7 2.85% 17158.3 2.62%
01-08-2022 512.3 0.51% 17397.5 1.39%
08-08-2022 512.0 -0.07% 17698.2 1.73%
15-08-2022 502.0 -1.95% 17758.4 0.34%
22-08-2022 505.3 0.66% 17558.9 -1.12%
29-08-2022 517.8 2.46% 17539.4 -0.11%
05-09-2022 533.8 3.10% 17833.3 1.68%
12-09-2022 542.0 1.53% 17530.8 -1.70%
19-09-2022 531.2 -1.99% 17327.3 -1.16%
26-09-2022 511.9 -3.63% 17094.3 -1.34%
03-10-2022 511.5 -0.08% 17314.7 1.29%
10-10-2022 508.6 -0.57% 17185.7 -0.74%
17-10-2022 541.1 6.38% 17576.3 2.27%
24-10-2022 550.6 1.77% 17786.8 1.20%
31-10-2022 573.0 4.06% 18117.2 1.86%
07-11-2022 580.1 1.24% 18349.7 1.28%
14-11-2022 581.5 0.23% 18307.7 -0.23%
21-11-2022 586.0 0.78% 18512.8 1.12%
28-11-2022 586.1 0.02% 18696.1 0.99%
05-12-2022 594.8 1.47% 18496.6 -1.07%
12-12-2022 582.1 -2.13% 18269.0 -1.23%
19-12-2022 553.8 -4.86% 17806.8 -2.53%
26-12-2022 592.1 6.92% 18105.3 1.68%
02-01-2023 579.5 -2.13% 17859.4 -1.36%
09-01-2023 579.0 -0.09% 17956.6 0.54%
16-01-2023 571.3 -1.32% 18027.7 0.40%
23-01-2023 520.9 -8.82% 17604.3 -2.35%
30-01-2023 525.0 0.79% 17854.1 1.42%
06-02-2023 533.6 1.63% 17856.5 0.01%
13-02-2023 512.3 -3.99% 17944.2 0.49%
20-02-2023 502.7 -1.87% 17465.8 -2.67%
27-02-2023 541.4 7.71% 17594.3 0.74%
06-03-2023 528.1 -2.47% 17412.9 -1.03%
13-03-2023 511.1 -3.21% 17100.1 -1.80%
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

WACC
All figures are in INR unless stated otherwise.
Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta
2
Beta
3

State Bank of India India 56,06,147.0 7,42,349.2 30.00% 755.19% 88.31% 1.21 0.19
Bank of Baroda India 13,42,592.2 1,42,936.5 30.00% 939.29% 90.38% 1.73 0.23
Punjab National Bank India 14,51,810.9 1,38,012.1 30.00% 1051.94% 91.32% 1.67 0.20
Indian Overseas Bank India 3,16,292.6 1,26,362.6 30.00% 250.31% 71.45% 1.53 0.56
Union Bank India 11,63,058.5 1,12,381.9 30.00% 1034.92% 91.19% 1.43 0.17
Average 806.33% 86.53% 1.51 0.27
Median 939.29% 90.38% 1.53 0.20

Cost of Debt Cost of Equity

Pre-tax Cost of Debt 7.50% Risk Free Rate 7.16%

Tax Rate 30.00% Equity Risk Premium 9.65%
4
After Tax Cost of Debt 5.25% Levered Beta 1.10
Cost of Equity 17.75%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.20
Total Debt 56,06,147.0 88.31% 86.53% Target Debt/ Equity 642.35%
Market Capitalization 7,42,349.2 11.69% 13.47% Tax Rate 30.00%
Total Capitalization 63,48,496.2 100.00% 100.00% Levered Beta 1.10

Debt / Equity 755.19% 642.35% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 17.75%
2. Levered Beta is based on 2 year weekly data Equity Weight 13.47%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 5.25%
Debt Weight 86.53%

WACC 6.93%
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

DCF VALUATION
Calculation of PV of FCFF Mar-23A Mar-24F Apr-25F Apr-26F Apr-27F Apr-28F
EBIT 2,65,379.4 2,71,244.3 2,77,238.8 2,83,365.7 2,89,628.1 2,96,028.9
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT (1-T) 1,99,034.5 2,03,433.2 2,07,929.1 2,12,524.3 2,17,221.1 2,22,021.7
Less: Reinvestment Rate 1 25.00% 24.50% 24.00% 23.50% 23.00% 23.00%
Free Cash Flow to Firm 1,49,275.9 1,53,592.1 1,58,026.1 1,62,581.1 1,67,260.2 1,70,956.7
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.967 0.904 0.846 0.791 0.740
PV of FCFF 148529.0 142907.8 137493.5 132278.6 126435.2

Expected Growth 1 2.21%

Terminal Growth 2 6.80%
WACC 6.93% Sensitivity Analysis - Enterprise Value
WACC
Calculation of Terminal Value 9,72,43,725.65 6.93% 11.00% 12.00% 13.00%
5.00% 7370176.0 2841467.2 2533778.2 2303011.5
FCFF (N+1) 174734.8 6.80% 97243725.7 3764534.3 3172824.6 2771989.1
WACC 6.93% 7.00% -194637044.5 3918378.8 3272231.9 2841467.2
Terminal Growth 6.80% 8.00% -11433353.5 4995290.4 3918378.8 3272231.9
Terminal Value 13,05,56,302.1 GROWTH

Calculation of Equity Value

PV of FCC 687644.1 Sensitivity Analysis - Equity Value Per Share

PV of Terminal Value 96556081.5 WACC
Enterprise Value 97243725.7 1,03,727.17 6.93% 11.00% 12.00% 13.59%
Add: Cash 318311.9 5.00% 3024.0 -2050.4 -2395.2 -2779.0
Less: Debt 4989687.5 6.80% 103727.2 -1016.1 -1679.1 -2332.7
Equity Value 92572350.1 7.00% -223324.8 -843.7 -1567.7 -2268.0
No of Shares 892.5 8.00% -18045.3 362.9 -843.7 -1875.6
Equity Value per Share 103727.2 GROWTH
Share Price 831.8
Premium/Discount 0.01x

Assumptions
1. The reinvestment rate and growth rate are taken from the NYU Stern report on the Indian sector, updated in January 2024.
2. The terminal growth rate is based on India's long term GDP growth rate.
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN
Amount in Crores

COMPARABLE COMPANY VALUATION

Market Data Financials Valuation

Share Share Equity Enterprise

Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/Sales EV/EBITDA P/E
State Bank of India SBIN 831.8 892.5 7,42,348.2 52,79,574.7 60,21,922.9 4,39,188.5 3,54,850.4 69,543.4 13.71x 16.97x 10.67x
Bank of Baroda BANKBARODA 276.4 517.1 1,42,937.5 12,40,218.8 13,83,156.3 1,18,379.2 95,698.4 18,868.9 11.68x 14.45x 7.58x
Punjab National Bank PNB 125.3 1,101.1 1,38,011.9 13,20,410.7 14,58,422.5 1,09,064.6 83,593.1 9,157.2 13.37x 17.45x 15.07x
Union Bank IOB 147.2 763.4 1,12,381.9 2,97,738.1 4,10,120.0 1,00,375.6 17,966.5 13,797.1 4.09x 22.83x 8.15x
Indian Overseas Bank UNIONBANK 66.9 1,890.2 1,26,362.5 10,50,459.7 11,76,822.2 24,049.7 84,871.9 2,655.6 48.93x 13.87x 47.58x
High 48.93x 22.83x 47.58x
75th Percentile 13.71x 17.45x 15.07x
Average 18.36x 17.11x 17.81x
Median 13.37x 16.97x 10.67x
25th Percentile 11.68x 14.45x 8.15x
Low 4.09x 13.87x 7.58x

STATE BANK OF INDIA Comparable Valuation EV/Sales EV/EBITDA P/E

Implied Enterprise Value 58,72,873.0 60,21,922.9 60,21,922.9
Net Debt 52,79,574.7 52,79,574.7 52,79,574.7
Implied Equity Value 5,93,298.3 7,42,348.2 7,42,348.2
Share Outstanding 892.5 892.5 892.5
Implied Value Per Share 664.8 831.8 831.8
 STATE BANK OF INDIA
BSE: 500112 | NSE: SBIN

Value at Risk (VAR) & Monte Carlo Simulation

Date Adj Close Return Sorted Return Replication Simulated Returns Calucation of Value at Risk (VAR)
03-06-2024 905.65 3.05 0.155531868 1 1.69%
13-05-2004 42.97 -1.53 0.15 2 -3.11% Historical Approach
20-03-2020 197.52 1.68 0.14 3 -0.06% Mean -0.06%
14-05-2004 36.85 -1.83 0.14 4 -0.13% Std Deviation 2.37%
11-03-2020 230.70 0.74 0.14 5 -0.85% Min -24.44%
23-10-2008 109.59 1.85 0.13 6 1.53% Max 15.55%
27-02-2002 17.23 0.38 0.11 7 -3.98% Stock Price Currnet 831.8
14-09-2001 11.83 -0.49 0.11 8 0.65%
28-03-1997 19.21 -1.61 0.11 9 -3.15% Percentile Confidence Var % Stock Price Var(INR)
24-10-2008 96.24 1.72 0.10 10 -0.77% 5% 95.00% -3.69% 862.5 -30.7
27-10-1997 17.19 -1.69 0.10 11 -0.37% 1% 99.00% -6.15% 883.0 -51.2
27-03-2009 92.90 -0.62 0.10 12 2.37% 0.50% 99.50% -7.10% 890.8 -59.0
29-02-2008 172.01 0.12 0.09 13 2.62% 10% 90.00% -2.67% 854.0 -22.2
03-07-2009 152.03 1.39 0.09 14 -1.31%
27-05-2004 37.90 -0.67 0.09 15 -0.77% Calucation of Monte Carlo Simulation
17-05-2006 73.89 -0.64 0.09 16 -3.27%
17-10-2007 140.56 -0.56 0.09 17 1.34% Monte Carlo Simulation Approach
21-08-2015 246.29 2.83 0.09 18 1.60% Mean -0.06%
21-07-2000 14.51 -2.68 0.09 19 -0.19% Std Deviation 2.34%
21-02-2012 211.66 0.72 0.08 20 3.31% Min -8.69%
08-12-2006 103.08 2.29 0.08 21 0.29% Max 9.10%
20-09-2001 10.48 -0.51 0.08 22 -2.12% Stock Price Currnet 831.8
10-01-2000 17.53 0.31 0.08 23 1.49%
02-10-1998 12.86 -0.12 0.08 24 2.92% Percentile Confidence Var % Stock Price Var(INR)
09-03-1999 14.51 0.09 0.08 25 3.01% 5% 95.00% -3.89% 864.1 -32.3
02-04-1999 13.23 0.25 0.08 26 -2.02% 1% 99.00% -5.44% 877.1 -45.3
23-04-1999 10.27 -0.30 0.08 27 1.90% 0.50% 99.50% -6.02% 881.9 -50.1
03-04-2000 13.87 -0.06 0.08 28 -0.13% 10% 90.00% -3.09% 857.5 -25.7
02-03-2000 14.70 -2.16 0.08 29 1.27%
16-10-2008 127.30 -0.49 0.08 30 0.71%
22-05-2013 207.66 0.82 0.08 31 0.58%
30-06-2008 91.85 1.92 0.08 32 1.07%
 STATE BANK OF INDIA
(BSE: 500112 | NSE: SBIN)

831.8 INR
52 Week (High - INR 912 & Low - INR 543)

About the Company

Founded in 1955, the State Bank of India (SBI) is a premier financial services institution headquartered in India. SBI operates as one of the largest and
most renowned banks in the country, providing an extensive range of financial products and services to individuals and businesses. The bank's
offerings include retail banking, corporate banking, insurance, investment banking, asset management, and wealth management services.

Financial Summary

Revenue (INR Cr.) Net Profit (INR Cr.) Avg. Total Assets (INR Cr.)
4,73,378 56,558 43,456
4,06,973
3,85,338
3,68,011

36,356 41,316
40,604
24,280 39,775
18,177

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity Return on Assets Financial Leverage

11% 130%
0.11x
0.10x
0.09x
8% 0.08x
88%
6%
5% 60%
46%

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Result Summary

• State Bank of India (SBI) has seen a positive trend in its share price this year, with a decent increase over the past 6 months.
• Analysts are mostly bullish on SBI, with a good number recommending a "strong buy" and some suggesting a "buy" rating.
• This indicates confidence in the future growth potential.
• SBI recently reported a healthy net profit, which could be a sign of financial stability and improved performance.
• The bank's large branch network and strong brand presence in India position it well to benefit from a potential economic
upswing.
 Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit -4187.4 3069.1 18176.8 24279.7 36356.2 56558.4
Average Shareholder Equity 338918.0 349656.6 368308.0 401091.6 443368.8 511725.3
Return on Equity -1.24% 0.88% 4.94% 6.05% 8.20% 11.05%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit -4187.4 3069.1 18176.8 24279.7 36356.2 56558.4
Revenue 306527.7 330687.4 368010.7 385337.9 406973.1 473378.1
Net Profit Margin (A) -1.37% 0.93% 4.94% 6.30% 8.93% 11.95%

Revenue 306527.7 330687.4 368010.7 385337.9 406973.1 473378.1

Average Total Asset 46612.0 40987.8 39774.6 40604.4 41316.5 43456.1
Asset Turnover Ratio (B) 6.6X 8.1X 9.3X 9.5X 9.9X 10.9X

Average Total Asset 46612.0 40987.8 39774.6 40604.4 41316.5 43456.1

Average Shareholder Equity 338918.0 349656.6 368308.0 401091.6 443368.8 511725.3
Equity Multiplier (C) 0.14X 0.12X 0.11X 0.10X 0.09X 0.08X

Return on Equity (A*B*C) -1.24% 0.88% 4.94% 6.05% 8.20% 11.05%

Return on Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit -4187.4 3069.1 18176.8 24279.7 36356.2 56558.4
Average Total Asset 46612.0 40987.8 39774.6 40604.4 41316.5 43456.1
Return on Assets -8.98% 7.49% 45.70% 59.80% 87.99% 130.15%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit -4187.4 3069.1 18176.8 24279.7 36356.2 56558.4
Revenue 306527.7 330687.4 368010.7 385337.9 406973.1 473378.1
Net Profit Margin (A) -1.37% 0.93% 4.94% 6.30% 8.93% 11.95%

Revenue 306527.7 330687.4 368010.7 385337.9 406973.1 473378.1

Average Total Asset 46612.0 40987.8 39774.6 40604.4 41316.5 43456.1
Asset Turnover Ratio (B) 6.6X 8.1X 9.3X 9.5X 9.9X 10.9X

Return on Assets (A*B) -8.98% 7.49% 45.70% 59.80% 87.99% 130.15%

Dupont Summary

Return on Equity: ROE improved significantly from -1.24% in 2018 to 11.05% in 2023, indicating a notable increase in profitability
from shareholders' equity over the period.
Net Profit Margin: The net profit margin saw a substantial increase from -1.37% in 2018 to 11.95% in 2023, reflecting a significant
improvement in profitability relative to sales.
Asset Turnover Ratio: The asset turnover ratio increased steadily from 6.6X in 2018 to 10.9X in 2023, indicating enhanced efficiency
in using assets to generate revenue.
Equity Multiplier: The equity multiplier gradually decreased from 0.14X in 2018 to 0.08X in 2023, suggesting a reduced reliance on
financial leverage over time.
Return on Assets: ROA showed significant improvement, starting at -8.98% in 2018 and rising sharply to 130.15% in 2023, indicating
a substantial increase in the efficiency of generating profits from assets.
Disclaimer: This report is made as a part of educational assignment and is meant for educational purpose only. The author of this report is not liable
for any losses due to action taken basis this report. It is advisable to consult SEBI registered research analyst before making any investments