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Majority of domestic and global brokerages have maintained their ‘buy’ call on SBI after India’s largest PSU posted record profits.
State Bank of India, after market hours on Thursday, reported its highest standalone quarterly net profit at ₹20,698 crore in Q4 FY24 on the back of robust growth in non-interest income.
The bank’s decisive financial performance has boosted the confidence of analysts, who in turn have increased the target price up to ₹1,000.
Nomura has increased the target price on SBI stock, its top pick, to ₹1,000 from ₹825.
Jefferies retained its ‘buy’ call and has raised the target price to ₹980 from ₹810.
Retaining ‘outperform rating’ at a target price of ₹840, Santanu Chakrabarti, an analyst at BNP Paribas, said, “We continue to value SBIN via the SoTP method with the bank valued at 1.1x 3QFY26E core bank BVPS as we expect sustainable core RoE of 11-15 per cent across cycles (RoE has now been more than 15% for seven straight quarters).”
ICICI Securities pointed out that SBI has surpassed estimates on NII, other income, and opex.
Q4FY24 RoA came in at a strong 1.36 per cent, pushing FY24 RoA to 1.04 per cent. The brokerage maintained ‘buy’ rating with an SoTP-based revised target price of ₹980 from ₹780, valuing core banking business at nearly 1.6x FY26E.
“We see merit in the rise in multiple given sustained strong execution, healthy deposits franchise, superior PPoP growth, continued comfort on asset quality, and high visibility of more than 16 per cent RoE,” analysts said.
Emkay Global’s analysts emphasised factoring in the healthy NIMs/ fees, treasury gains, lower opex, and contained LLP- a trend to be seen across PSBs, and more so for SBI, “we raise our earnings for FY25-26E by 9-14 per cent and expect a sustained strong RoA/RoE at 1.1 per cent/17-18 per cent.” They retained ‘buy’ call with a revised target price of ₹950 from ₹750.
Motilal Oswal has reiterated ‘buy’ call at a target price of ₹925. The brokerage noted that the bank has made swift recovery in earnings from a loss of ₹65 billion in FY18 to profits of ₹611 billion in FY24.
“We also note that the cumulative profit of the bank over the past three years (FY22-24) is equivalent to what the bank earned in the prior 20 years combined. We believe that SBIN is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1 per cent/18.5 per cent,” Motilal Oswal said in a report.
Prabhudas Lilladher remained positive on SBI although valuation has touched 1.3x given recent run-up, which limits upside. “Rolling forward to Mar’26 ABV, we tweak multiple to 1.5x and raise SOTP based target price to ₹910 from ₹770,” the brokerage said retaining its ‘buy’ call.
However, Citi has maintained ‘sell’ call with a target price raised to ₹701.
Shares of SBI hit an all-time high on the NSE at 839.65 on May 9. The stock on Friday ended at ₹816.85, down by 0.36 per cent.
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