SBI share price can go up to ₹1,000, say analysts post Q4 results
SBI share price can go up to ₹1,000, say analysts post Q4 results
State Bank of India Ltd., India’s largest lender, may see its share price hit four digits in the next 12 months after the lender surprised the street positively in its March quarter results.
Post SBI’s results, Chairman Dinesh Khara told CNBC-TV18 that he expects the loan growth to continue to remain at levels of 16% going forward. Loan growth was the big positive for SBI during the quarter. Khara expects good growth to come from SME, retail, agri and the corporate segment.
Khara also spoke about the bank’s capital raising plans going forward, saying that the bank will raise tier-I capital this year.
Out of the 51 analysts that have coverage on SBI, 41 of them continued to maintain a “buy” rating on the stock, while seven of them have a “hold” rating. Three analysts still have a “sell” rating.
Brokerage firm Nomura highlights SBI as its top pick and has raised its price target on the lender to ₹1,000 from ₹825 earlier. It has also raised its financial year 2025 and 2026 Earnings per Share estimates for SBI by 15% and cut its credit cost estimates for the same time frame to 0.4% from 0.55% earlier.
Nomura is now working with a 1% Return on Assets and Return on Equity to range between 17% to 18% over financial year 2025 and 2026, along with 14% loan growth.
Another brokerage that has a price target of ₹1,000 on SBI is Haitong, who raised its target from its earlier projection of ₹782.
Haitong said that it expects further improvement in SBI’s asset quality, margins and business momentum going forward.
It anticipates RoA of 1.1% over financial year 2025 and 2026 led by a 14% Compounded Annual loan Growth Rate and credit cost of around 30 basis points.
Kotak Institutional Equities has also raised its price target on SBI to ₹950 and maintained its “buy” recommendation, stating that it expects a “relatively stable performance” from SBI as macro environment continues to remain fairly stable for lenders.
It also highlighted SBI as its top pick but also said that it does not see any sharp outperformance from current levels.
Jefferies has also retained its “buy” rating on the stock and raised its price target to ₹980 from ₹810 earlier.
InCred is also among those brokerages who have a price target of ₹1,000 on SBI. It said that a consistent delivery of 1% RoA and 16% RoE will ensure that SBI is valued at a premium compared to its peers.
Shares of SBI have risen 30% so far in 2024 and was also among the top performers on the Nifty on Thursday in an otherwise weak market.