SBI share price extends gains as analysts remain bullish after upbeat Q4 results; Should you buy the stock?
₹20,698 crore in the fourth quarter of FY24, registering a growth of 24% from ₹16,694.5 crore in the year ago quarter. The PSU lender’s management expects to grow its credit book by 14-16% in the current fiscal year, reflecting the general optimism around domestic growth. It projected deposit growth of 12-13% for FY25.
Read here: SBI projects optimism in itself, economy after strong Q4 Asset quality of the bank improved during the March quarter as Gross NPA decreased 2.9% and Net NPA declined 6.1% QoQ. “SBI logged a strong all-around show in 4Q, with robust credit growth at 16% YoY, healthy margins at 3.3%, and a strong 14% PAT beat," said Anand Dama, Senior Research Analyst at Emkay Global Financial Services. Factoring in the healthy NIMs/fees, treasury gains, lower opex and contained LLP—a trend to be seen across PSBs, and more so for SBI, Emkay Global raised its earnings estimates for FY25-26E by 9-14% and expects a sustained strong RoA and RoE at 1.1% and 17-18%.
It retained a ‘Buy’ rating and raised SBI share price target to ₹950 apiece from ₹750 earlier. Also Read: BPCL, HPCL shares jump up to 5% post-Q4 earnings, should you buy, sell, or hold? Here's what experts say Kotak Institutional Equities maintained a ‘Buy’ call on SBI shares with a target price of ₹950 apiece. The brokerage said that the bank’s steady loan growth, stable NIM and solid asset quality metrics were key highlights.
It expects SBI to see relatively stable performance going ahead. Brokerage firm Motilal Oswal said that SBI reported a steady quarter with steady growth in revenues, while robust asset quality helped the bank maintain strong control over provisioning expenses. It estimates SBI to deliver RoA and RoE of 1.1% and 18.5% in FY26.
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