State Bank of India (SBI) shares reached a record high during today’s afternoon trading session. On the BSE, SBI stock increased 2.01% during the day to reach a high of Rs 758.70. The bank’s market capitalization increased to Rs 6.75 lakh crore. A total of 4.18 lakh shares were traded on the BSE, generating a turnover of Rs 31.31 crore.
The relative strength index (RSI) of the SBI stock indicates that it is in the overbought zone, indicating that the stock has reached a record high. SBI’s technical ratio indicator (RSI) is 76.2. With a one-year beta of 0.6, SBI stock shows extremely little volatility over that time. The 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages are all being exceeded by the price of SBI shares.
In 2024, the stock increased by 18%, and in a year, it gained 39.75%.
For the SBI stock, Axis Securities has set a target price of Rs 800. Because of its solid capitalization, strong liability franchise, improved asset quality outlook, and healthy provision coverage ratio, SBI continues to be the best bet among PSU banks on the slow but steady recovery of the Indian economy, according to the brokerage.
According to Axis Securities, SBI is well-positioned to generate RoA/RoE of 1%/16% over FY24–26E, backed by consistent cost ratios and stable credit costs. The price-to-book ratio for the lender is 2.5. In comparison to peers like Bank Of Baroda (1.53), PNB (1.54), and Union Bank (1.49), the ratio is high.
Additionally, the state-owned lender’s PEG ratio is low—0.3. A stock is deemed undervalued if its PEG ratio is less than 1, and it is deemed overvalued if it is greater than 1. As of the December 2023 quarter, the bank’s Capital Adequacy Ratio (CAR) stood at 14.68%. In India, public sector banks must keep their CAR at least 12%.
With a target price of Rs. 860, Motilal Oswal has reiterated its buy recommendation on SBI shares.
We project a 22% compound annual growth rate in earnings over FY24–26, with a blip in 2HFY24, translating into an FY26E RoA/RoE of 1.2%/19.1%. We maintain our BUY rating on SBI with a target price of Rs 860, making it one of our preferred ideas in the sector. With the support of a rebounding corporate demand and an enhanced loan disbursement rate for approved loans, SBI is poised to generate 13–14% loan growth over FY23–26E, according to Motilal Oswal.
Compared to the same period last year, the lender’s net profit in Q3 dropped by 35% to Rs 9,163 crore from Rs 14,205 crore. Interest income earned in Q3 FY24 was Rs 105,733.78 crore, up 22% from Rs 86,616.04 crore recorded in the same period last year. The largest bank in the nation missed estimates of Rs 40,304 crore with its net interest income (NII) of Rs 39,815 crore.
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