There was a stormy rise in the shares of State Bank of India (SBI), the country’s largest government bank, on Friday. The share reached Rs 829.90 on the last trading day of the week. The stock closed down 1.59% from a day earlier. The share had reached a price of Rs 831 during trading. On June 3, 2024, the share reached Rs 912.10. This is the 52-week high of the stock. The share had touched a 52 week low of Rs 543.15 in October 2023.
What does the brokerage have to say?
SBI is getting closer to some private sector banks in terms of valuation. Brokerage JM Financial said credit concerns still remain a major talking point for PSU banks. JM Financial said the improvement in credit demand could help SBI deliver credit growth in the near term. The brokerage has set the target price for the share at Rs 1050. Along with this, it has maintained its buy rating on the stock. The brokerage said the bank’s valuation is at 1.5 times its FY26 estimated BVPS. SBI remains our top PSU choice.
SBI is Nomura’s top choice. It has also set a target of Rs 1000 on the share. The brokerage raised its fiscal year 2025 and 2026 earnings per share estimates for SBI by 15% and cut its credit cost estimate for the same time frame to 0.4% from 0.55%.
bank results
SBI posted profit of Rs 20,698.35 crore in the March quarter, up 24 per cent year-on-year due to higher interest income and lower provisions. The bank had registered a profit of Rs 16,694.5 crore in the March quarter of the last financial year. The bank’s board declared a dividend of Rs 13.70 per equity share for the financial year ended March 31.
