SBI Shares Surge Following Strong Q1 Results: Analysts Weigh In
Shares of the State Bank of India (SBI) saw a notable increase of over 2% on Monday, reaching a high of ₹822.85 after the bank reported impressive Q1 results. With a standalone net profit of ₹19,160 crore, analysts from various brokerage firms have shared their insights and target prices for SBI's stock. Ratings range from 'Buy' to 'Neutral', with target prices varying significantly. The article delves into the financial highlights and expert opinions on SBI's performance, including asset quality metrics and expectations for future growth. Discover what analysts are saying about SBI's stock trajectory.
| Aug 11, 2025, 12:40 IST
SBI Stock Performance
On Monday morning, shares of the State Bank of India (SBI) experienced an increase of over 2%. The stock opened at ₹807, compared to its previous closing price of ₹804.55, and reached a high of ₹822.85. This uptick follows the bank's impressive results for the June quarter (Q1FY26).
Financial Highlights
SBI reported a standalone net profit of ₹19,160 crore, surpassing the ₹17,035 crore recorded in the same quarter last year. In light of these results, several brokerage firms have provided their insights and target prices for the stock.
Analyst Ratings
HSBC's Perspective
- Rating: Buy
- Target Price: ₹960
- Performance exceeded expectations, particularly due to treasury income.
- Loan growth is expected to remain strong, supporting NIM.
UBS's Perspective
- Rating: Neutral
- Target Price: ₹880
- Margins met expectations, with better results due to control over other income and expenses.
- Business growth was moderate, but management is confident about loan growth.
CLSA's Perspective
- Rating: Outperform
- Target Price: ₹1050
- Core profit was 32% higher than estimates, with loan growth outpacing the sector.
- Asset quality remains strong, with lower-than-expected slippages.
Jefferies' Perspective
- Rating: Buy
- Target Price: ₹970
- Annual profit growth of 12%, benefiting from treasury gains and reduced expenses.
- NIM saw a slight decline of 10bps, while asset quality remained stable.
Morgan Stanley's Perspective
- Rating: Equal-weight
- Target Price: ₹885 (up from ₹850)
- Core performance met expectations, with RoA above 1%.
- There was a slight decrease in NII, but lower expenses balanced this out.
Asset Quality and NPA
- The bank's gross NPA ratio stood at 1.83%, improving by 38 basis points year-on-year.
- The net NPA ratio was 0.47%, reflecting a year-on-year improvement of 10bps.
- Provision coverage ratio (PCR) is at 74.49%, and when including written-off accounts, it rises to 91.71%.
- The slippage ratio for Q1FY26 was 0.75%, better than the previous year's figure by 9bps.
- This quarter's credit cost was recorded at 0.47%.