SBI Share Price Target: Shares of State Bank of India (SBI) rose sharply in early trade on Monday after the country’s largest lender reported better-than-expected
earnings for the June quarter (Q1FY26). The stock opened at Rs 807 on the BSE, higher than its previous close of Rs 804.55, and surged to an intraday high of Rs 822.85, marking a gain of more than 2% in morning trade.
Earnings beat street estimates
SBI reported a standalone net profit of Rs 19,160 crore for the June quarter, up from Rs 17,035 crore in the corresponding quarter last year. The result comfortably beat analysts’ expectations, which were pegged at Rs 17,095 crore.
The lender’s interest income rose 6% year-on-year to Rs 1,17,996 crore, compared with Rs 1,11,526 crore in Q1FY25. Strong other income and lower operating expenses also supported the bottom line.
Avendus raises rating and price target
Brokerage firm Avendus Capital upgraded SBI to a ‘Buy’ from ‘Add’ and increased its target price to Rs 938 from Rs 852.
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- Expectation of faster-than-system loan growth
- Operational and opex levers to offset the net interest margin (NIM) impact from possible rate cuts
- FY26E NIM seen at 2.7%, aided by a sharper cut in savings account rates than earlier anticipated
- Slippages for FY26E estimated at 0.7% due to robust asset quality
- RoA/RoE projected to moderate from 1.1%/18.6% in FY25 to 1.0%/15.1% in FY26E
- Earnings and core adjusted book value (ABV) CAGR projected at 4.3% and 17.3% respectively over FY25-27E
- Target multiple raised to 1.1x June 2027E ABV
Antique Broking maintains bullish stance
Antique Broking maintained its ‘Buy’ rating on SBI with a target price of Rs 955 after the lender’s Q1 earnings surpassed expectations.
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- Earnings beat driven by higher other income and lower operating expenses
- FY26 and FY27 loan growth estimates cut slightly to 12% and 13% (from 13% and 14%) due to muted system-wide credit growth
- Adjustments in estimates also factor in lower opex and higher credit costs
- Valuations considered attractive given an average RoA of 1% and RoE of 15% projected for FY26-28
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
