SBI share price: JM Financial raises target, sees 15% upside in PSU lender post Q2 results
At last check, SBI shares were trading 0.42 per cent higher at Rs 961.10, having gained in 16 of the past 19 sessions.
- Nov 6, 2025,
- Updated Nov 6, 2025 10:33 AM IST
Domestic brokerage JM Financial has reiterated its ‘Buy’ call on State Bank of India (SBI), citing the lender’s strong Q2 performance and sustained business momentum. The brokerage raised its 12-month target price to Rs 1,105 from Rs 950, implying a potential upside of 15 per cent from the stock’s current levels.
JM Financial said SBI’s steady operating performance was supported by robust asset quality and proactive liability management, helping its net interest margin (NIM) expand by 3 basis points (bps) sequentially. Even after excluding a one-time income tax refund, the bank’s core NIM rose 1 bp, outperforming peers that saw a 5–8 bps contraction, the report noted.
While SBI’s core pre-provision operating profit (PPOP) met estimates, its adjusted profit after tax (PAT) declined 13 per cent QoQ, largely due to an 11 per cent rise in operating expenses driven by higher GST outgo and tech-related costs.
JM Financial underscored the lender’s healthy and broad-based loan growth, as SBI raised its FY26 credit growth guidance to 12–14 per cent, up from 12–13 per cent earlier. This outlook is backed by a strong corporate pipeline and project base of around Rs 7 lakh crore, including unutilised working capital and loans under disbursement.
Asset quality continued to improve, with the gross slippage ratio falling 33 bps QoQ to 0.48 per cent, and the SMA book shrinking further. JM Financial expects the bank’s robust asset quality and strong recovery visibility to keep credit costs muted.
The brokerage has raised its EPS estimates for FY26 and FY27 by 11 per cent and 6 per cent, respectively. It expects SBI to maintain ROA above 1 per cent and ROE near 15 per cent through FY26–28. The new target values the core bank at 1.3 times FY27E standalone book value per share (BVPS).
At last check, SBI shares were trading 0.42 per cent higher at Rs 961.10, having gained in 16 of the past 19 sessions.
Domestic brokerage JM Financial has reiterated its ‘Buy’ call on State Bank of India (SBI), citing the lender’s strong Q2 performance and sustained business momentum. The brokerage raised its 12-month target price to Rs 1,105 from Rs 950, implying a potential upside of 15 per cent from the stock’s current levels.
JM Financial said SBI’s steady operating performance was supported by robust asset quality and proactive liability management, helping its net interest margin (NIM) expand by 3 basis points (bps) sequentially. Even after excluding a one-time income tax refund, the bank’s core NIM rose 1 bp, outperforming peers that saw a 5–8 bps contraction, the report noted.
While SBI’s core pre-provision operating profit (PPOP) met estimates, its adjusted profit after tax (PAT) declined 13 per cent QoQ, largely due to an 11 per cent rise in operating expenses driven by higher GST outgo and tech-related costs.
JM Financial underscored the lender’s healthy and broad-based loan growth, as SBI raised its FY26 credit growth guidance to 12–14 per cent, up from 12–13 per cent earlier. This outlook is backed by a strong corporate pipeline and project base of around Rs 7 lakh crore, including unutilised working capital and loans under disbursement.
Asset quality continued to improve, with the gross slippage ratio falling 33 bps QoQ to 0.48 per cent, and the SMA book shrinking further. JM Financial expects the bank’s robust asset quality and strong recovery visibility to keep credit costs muted.
The brokerage has raised its EPS estimates for FY26 and FY27 by 11 per cent and 6 per cent, respectively. It expects SBI to maintain ROA above 1 per cent and ROE near 15 per cent through FY26–28. The new target values the core bank at 1.3 times FY27E standalone book value per share (BVPS).
At last check, SBI shares were trading 0.42 per cent higher at Rs 961.10, having gained in 16 of the past 19 sessions.