SBI Stock: Brokerage firms raise price targets for PSU scripts after Q1 results; expected return rate to 21%
SBI stock price target: The National Bank of India (SBI) has revised the price targets from multiple brokers after double-digit growth in lender’s first-quarter profits and has reported further improvements in asset quality.
SBI Q1 FY26 earnings focus
PSU Bank’s net profit rose 12% year-on-year to Rs 19.16 crore in the April-June quarter compared with Rs 17,035 crore in the same period last year. Total revenue climbed to Rs 135,342 crore from Rs 122,688 crore.
Operating profit for the quarter increased to Rs 305.4 crore from the corresponding quarter of the previous year.
In terms of asset quality, overall non-performing assets (NPA) fell from 2.21% a year ago to 1.83% of the total. Net NPA dropped from 0.57% to 0.47%. However, regulations and accidents rose to Rs 475.9 billion in the same period last year.
The bank’s capital adequacy ratio increased to 14.63% from 13.86% last year.
Analysts see almost 21% upside
Jefferies has retained the “buy” call for bank stocks and raised its target price to Rs 970 – a 20.87% upside compared to Friday’s closing price (from Rs 960), citing strong earnings and healthy asset quality trends. HSBC also reiterated its “buy” stance, increasing its target from Rs 950 to Rs 960, while highlighting the consistent operational performance and balance sheet strength of SBI.
Meanwhile, domestic broker JM Financial also maintained its “buy” proposal and raised its 12-month target share price from Rs 925 to Rs 950, which has 18% upside potential.
(Disclaimer: The views/advices/advices expressed here in this article are only by investment experts. Zee Business recommends that its readers consult their investment advisors before making any financial decisions.)
