SBI Contra Fund is a dynamic equity mutual fund that aims to capitalize on market inefficiencies by investing in undervalued stocks. Ideal for investors looking for long-term capital appreciation, this fund adopts a contrarian investment strategy. It is suitable for those with a moderate to high-risk appetite who seek to diversify their portfolio with quality stocks. The fund's experienced management team focuses on identifying opportunities in out-of-favor sectors, making it a compelling choice for discerning investors.

Dynamic equity mutual fund focusing on undervalued stocks
Ideal for long-term capital appreciation
Contrarian investment strategy for market inefficiencies
Managed by experienced professionals
Suitable for moderate to high-risk investors
Diversifies portfolio with quality stock selections

Investment Thesis

SBI Contra Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This fund is well-positioned to capitalize on market opportunities, making it a compelling choice for retail investors seeking long-term gains.

Backed by SBI, a trusted financial institution with a solid track record.
Significant growth in digital services enhances operational efficiency and customer reach.
Valuation metrics indicate potential for substantial upside relative to competing funds.
Diversified portfolio strategy mitigates risks while aiming for superior returns.
Strong focus on long-term capital appreciation aligns with investor goals.

Opportunity vs Risk

Opportunities

Strong historical performance
Diversified investment portfolio
Experienced fund management team
Potential for long-term growth

Risks ⚠️

Market volatility impact
High expense ratio
Regulatory changes
Limited short-term gains

Peer Perspective

SBI Contra Fund trades at a slight premium compared to peers like HDFC Equity Fund and ICICI Prudential Value Discovery Fund. A rerating could occur if the fund demonstrates consistent margin stability and improved growth metrics.

📊 Stock Investment Checklist (100 Points)

SBI Contra Fund(IDCW-Payout) • Updated: 2025-10-01 07:04:58

10

Business
High

The fund is invested in a diversified portfolio, but the sector is facing challenges.
10

Growth
High

Moderate revenue growth observed, but inconsistent profit margins.
10

Profitability
High

ROE and ROCE are decent, but cash flow is inconsistent.
10

Valuation
High

Valuation metrics are in line with peers, but not compelling.
8

Balance
High

Balance sheet shows moderate debt levels and adequate liquidity.
7

Governance
High

Promoter holding is stable, but some concerns over disclosures.
8

Drivers
High

Growth drivers are present, but execution risks are notable.
4

Technicals
Good

Market sentiment is mixed with low liquidity.

Final Score & Verdict

Score 64 / 100 • Decent

The SBI Contra Fund shows potential but comes with moderate risks and inconsistent performance metrics.