Mumbai: State Bank of India (SBI) shares saw strong buying after Q3 results. The stock price jumped about 6 percent and became the top gainer in the Nifty 50 index. This is SBI’s biggest single-day rise since June 2024.
The rally came after the bank reported strong December quarter results. Net profit grew about 24 percent year-on-year and came above market expectations. The bank also increased its business outlook for the next financial year.
Loan Growth Beats Private And PSU Bank Peers
SBI performed strongly in loan growth. The bank outperformed major private banks like ICICI Bank and HDFC Bank in loan expansion.
Analysts said SBI’s sequential loan growth has been stronger than most PSU banks and large private banks. CLSA noted that SBI has gained market share in lending compared to its peers.
Most Analysts Recommend Buying SBI Shares
After strong results, several brokerages increased their target price for SBI shares. According to Bloomberg data, 42 out of 49 analysts tracking SBI have given a Buy rating. At least five analysts have increased their target prices after results.
This shows strong confidence among analysts in SBI’s growth outlook.
Brokerages Positive On Margins And Asset Quality
Citi expects SBI’s margins to remain around 3 percent or higher. The brokerage said disciplined lending, strong recovery and strict credit checks will support asset quality.
Nuvama said SBI’s core earnings have been stronger than private banks for three straight quarters. Loan growth, stable margins and strong fee income supported performance.
Bernstein said strong growth, better margins and improving asset quality have helped SBI maintain Return on Assets above 1 percent and Return on Equity above 20 percent.
Nomura said most valuation re-rating has already happened, and future share price growth will depend mainly on earnings growth.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments involve risks. Investors should consult financial advisors and evaluate risks before making any investment decisions.
