SBI share price can surge up to Rs 1,000, say bulls after Q4 results

economictimes.indiatimes.com:

Brokerages remain bullish on State Bank of India(SBI) after the lender made a swift recovery in earnings reporting a standalone net profit of Rs 20,698 crore in Q4, up 24% YoY. The estimates on the target price for SBI go as high as Rs 1,000.

The profit was higher than the Street estimate of Rs 16,695 crore.

Here’s what brokerages say:

Nomura

Global brokerage firm Nomura mentioned that the PSU lender gave an all-round strong performance. While lower opex in Q4 was aided by lower wage revision, the LDR stood at 75%, still the lowest among large banks with substantial room to expand. The management also expects the opex ratios to trend lower going forward.

Nomura has retained its ‘buy’ rating for SBI with a target price of Rs 1,000.

JP Morgan

JP Morgan states that SBI’s FY24 print shows that the growth and ROE gap with the private banks has closed out and that they foresee a similar dynamic in the coming year as well. The brokerage firm also believes that SBI’s positioning is enviable with the growth pick up in corporate loans, low pressure on opex and a favourable asset quality environment.

“Despite potentially lower recovery income in FY25, we think the bank can continue to print 1%+ ROA,” added JP Morgan.

JP Morgan has increased the target price to Rs 1,000 while maintaining a ‘buy’ view.

Nuvama

Nuvama increased FY25/26 EPS by 14%/12% to factor in higher growth and NIM. With the RoA likely to stay above 1% and an RoE of 17% through FY26E, the brokerage firm lifted the target valuation to 1.5x from