SBI shares rose 38% from 52-week low this year, can they cross Rs 1,000 mark?

Shares of State Bank of India (SBI) have recovered 38% from their 52 week low in 2024. The banking stock slipped to Rs 600.70 on January 23 this year. It rose to a record high of Rs 912.10 on June 3, 2024. However, the stock has seen high volatility in a year with its beta at 1.4.  

In the current session, SBI stock was trading 0.95% lower at Rs 831.10 on BSE. Market cap of the bank stood at Rs 7.41 lakh crore. Total 1.89 lakh shares changed hands amounting to a turnover of Rs 15.63 crore on BSE.

Brokerages expect the banking stock to cross Rs 1,000 mark in 2025. 

Sharekhan has a buy call on the SBI stock with a revised price target of Rs 1050. 

"The asset quality is holding up well and the portfolio is still not showing worrying signs, including unsecured retail loans despite the slowdown in growth. Normalisation of credit costs will be gradual, keeping credit cost still far lower than the long-term averages. The stock trades at 1.3x/1.1x/0.9x its FY2025E/FY2026E/FY2027E core book value estimates. We maintain BUY with a revised price target of Rs 1,050. The stock remains our top pick in the PSU bank basket, said Sharekhan. 

Global brokerage Jefferies has a buy rating on SBI stock with a target price of Rs 1,030. The stock is also among the top picks for Jefferies.

Jefferies said SBI showed stable asset quality in the second quarter, with a key focus on an improvement in deposit growth. SBI's profit surged 28% to Rs 18,300 crore, exceeding expectations due to higher MTM gains and lower staff expenses.

CLSA has an outperform call on SBI with a price target of Rs 1,075. The brokerage expects Return on Equity (roE) for the lender to be in the range of 15% to 16%. The brokerage added that if loan growth continues to be in the early-teens, the multiples can re-rate from the current level of 1.3 times price-to-book.