Multibagger banking stock trading near record high, another 20% upside expected; here's why
The multibagger banking stock, which is trading nears its record high of Rs 45.17, is likely to reach a price target of Rs 53 in a year.
- Jan 19, 2026,
- Updated Jan 19, 2026 10:45 AM IST
Shares of South Indian Bank are set for a 20% upside after the lender reported its highest net profit in the December 2025 quarter, according to brokerage ICICI Securities. The multibagger banking stock, which is trading nears its record high of Rs 45.17, is likely to reach a price target of Rs 53 in a year.
South Indian Bank share price was trading at Rs 44.90 today. The stock reached its record high on January 16 this year.
On the other hand, the banking stock fell to a 52 week low of Rs 22.12 on April 7, 2025.
Total 19.08 lakh shares of the firm changed hands amounting to a turnover of Rs 8.42 crore. Market cap of the bank stood at Rs 11,711 crore.
The stock has gained 425% in five years and risen 168% in three years.
In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 67.6, signaling it's trading neither in the overbought nor in the oversold zone. South Indian Bank shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day 100 day, 150 day and 200 day moving averages.
The brokerage said South Indian bank (SIB) delivered better-than-expected performance on growth, NIM and asset quality (AQ).
The brokerage has raised its price target to Rs 53 (vs. Rs 42) and maintain a BUY call. It has increased the multiple to 1x (vs. 0.9x earlier) and roll forward to FY28E adjusted book value (vs. FY27E earlier).
It cited slower-than-expected growth in MSME and rise in stress in MSME as risks to its assumptions.
The brokerage pegged a loan CAGR of 13% for FY25–28, with growth likely to be driven by MSME and secured retail.
"We believe, NIM has additional tailwinds from loan mix change in favour of MSME. While South Indian Bank would need to accelerate opex, overall return on assets would be supported by rising NIM and muted credit costs," said the brokerage.
"We increase our PAT estimate and believe the bank will likely deliver RoA of 1–1.1% for FY26–28E," added ICICI Securities.
Net profit rose 9% to Rs 374.32 crore in the last quarter against Rs 341.87 crore in the corresponding quarter of the previous fiscal. Pre-provisioning operating profit in Q3 rose 10% to Rs 584.33 crore in Q3 FY26 from from Rs 528.84 crore in Q3 FY25.
The bank improved its asset quality in the last quarter.
Gross Non-Performing Assets (NPAs) slipped to 2.67 per cent of the gross loans by the end of December 2025 from 4.30% a year ago. Net NPAs dropped by 80 bps from to 0.45% in Q3 against 1.25% on a Y-o-Y basis.
Gross Advances grew by Rs 9,798 crore or 11% to Rs 96,764 crore in the last quarter from Rs 86,966 crore on Y-o-Y basis.Retail Deposits grew 13% or Rs 13,142 crore to Rs 1,15,563 crore in Q3 from Rs 1,02,421 crore a year ago.
Shares of South Indian Bank are set for a 20% upside after the lender reported its highest net profit in the December 2025 quarter, according to brokerage ICICI Securities. The multibagger banking stock, which is trading nears its record high of Rs 45.17, is likely to reach a price target of Rs 53 in a year.
South Indian Bank share price was trading at Rs 44.90 today. The stock reached its record high on January 16 this year.
On the other hand, the banking stock fell to a 52 week low of Rs 22.12 on April 7, 2025.
Total 19.08 lakh shares of the firm changed hands amounting to a turnover of Rs 8.42 crore. Market cap of the bank stood at Rs 11,711 crore.
The stock has gained 425% in five years and risen 168% in three years.
In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 67.6, signaling it's trading neither in the overbought nor in the oversold zone. South Indian Bank shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day 100 day, 150 day and 200 day moving averages.
The brokerage said South Indian bank (SIB) delivered better-than-expected performance on growth, NIM and asset quality (AQ).
The brokerage has raised its price target to Rs 53 (vs. Rs 42) and maintain a BUY call. It has increased the multiple to 1x (vs. 0.9x earlier) and roll forward to FY28E adjusted book value (vs. FY27E earlier).
It cited slower-than-expected growth in MSME and rise in stress in MSME as risks to its assumptions.
The brokerage pegged a loan CAGR of 13% for FY25–28, with growth likely to be driven by MSME and secured retail.
"We believe, NIM has additional tailwinds from loan mix change in favour of MSME. While South Indian Bank would need to accelerate opex, overall return on assets would be supported by rising NIM and muted credit costs," said the brokerage.
"We increase our PAT estimate and believe the bank will likely deliver RoA of 1–1.1% for FY26–28E," added ICICI Securities.
Net profit rose 9% to Rs 374.32 crore in the last quarter against Rs 341.87 crore in the corresponding quarter of the previous fiscal. Pre-provisioning operating profit in Q3 rose 10% to Rs 584.33 crore in Q3 FY26 from from Rs 528.84 crore in Q3 FY25.
The bank improved its asset quality in the last quarter.
Gross Non-Performing Assets (NPAs) slipped to 2.67 per cent of the gross loans by the end of December 2025 from 4.30% a year ago. Net NPAs dropped by 80 bps from to 0.45% in Q3 against 1.25% on a Y-o-Y basis.
Gross Advances grew by Rs 9,798 crore or 11% to Rs 96,764 crore in the last quarter from Rs 86,966 crore on Y-o-Y basis.Retail Deposits grew 13% or Rs 13,142 crore to Rs 1,15,563 crore in Q3 from Rs 1,02,421 crore a year ago.