Many people who told us that markets will fall must have I told you so looks on their faces but their victory will be only temporary. This is not emotional or philosophical talk, just plain speak. Think deeply . Suppose you were doing SIP, calculate the amount of money you would have put and compare their worth now. Stocks are assets. Would you buy an asset at higher price or lower price ? Of course the values change over time hence you have to identify businesses that are valuable. My next pick is a business whose value is quite high compared to the price the market is paying for it now. Will it ever reach its true value I do not know but its deeply undervalued now. The stock is State Bank of India. SBI was looking very attractive from higher levels but I waited to know the results with apprehension that it would slide further downwards. And it did. But SBI results were far better than most PSBs. Actually in many ways SBI and ICICI are very similar. SBI is largest public sector and ICICI is largest pvt sector. Both have very high deposit base, loan accounts, and branch network. And have huge investments in direct subsidiaries. Also high NPAs, and somewhat inefficient operations. Though unlike ICICI which is a laggard in the private sector, SBI actually has best operations in the PSB category. If there is any bank in the public sector that can survive the challenge of private banks it is SBI. Its investments in technology, branch expansion, and customer relations are all noteworthy. SBI has made a conscious effort to modernize and upgrade itself. Of course all this has not been of much help as rising NPAs and provisions have pushed the bank's stock to its lowest level in years. However a look at the numbers suggest that SBI is still on stronger footing. Its CAR is still high at 12.45%, the best in the public sector banking industry. Its provision coverage at 65% is better than most banks. Its CASA deposit ratio is one of the better ones in the industry meaning the bank can still access high amount of low cost deposits. With several positives and its size, SBI is the true proxy of India's economy and banking sector. At less than P to BV, it offers great value. With increased focus on NPA recovery and improvement in economy SBI can be a multibagger in the real sense.