SBI share price targets post Q1 results signal strong upside

Stock analysts largely maintained their ‘Buy’ rating on State Bank of India (SBI) after its June quarter results, as the PSU bank broadly met expectations on net interest income (NII) while beating estimates on pre-provision operating profit and profit after tax, aided by higher forex gains and lower operating expenses and provisions. The stock is trading at cheap valuations, analysts said as their target prices suggest strong upside going ahead. 

IIFL Securities raised its PAT estimates by 1-3 per cent, as it incorporate the recent Rs 25,000 crore capital raise. Its target price of Rs 930 suggests a 16 per cent potential upside for SBI and is based on 1.05 times June 2027 core price to book value and subsidiary valuation of Rs 260 per share. 

"Valuations are cheap at 0.9x FY27 core P/B for average ROA/ROE of 1 per cent/13.5 per cent over FY26-28E," IIFL said. 

Antique Stock Broking has rolled forward its valuation estimates to September 2027 and retained its target price of Rs 955 valuing the standalone bank at September 2027 P/BV of 1.17 timers. It assigned a value of Rs 253 per share to subsidiaries. 

"SBI continues to gain market share by outperforming the sector in terms of both credit and deposit growth. The bank has not seen any significant deterioration in asset quality across key sub-segments, including unsecured credit. Further, the bank also has margin levers from pick-up in unsecured Xpress credit growth which has hitherto been subdued along with renewed focus on CA growth. Valuations remain inexpensive," it said.

Systematix Institutional Equities continued to maintain 'Buy' rating on SBI with a revised target price of Rs 1,020 against Rs 1,027 earlier. "We are valuing the standalone bank at 1.1x on its FY27E book value per share of Rs 650. Further, we assign Rs 293 per share value to its subsidiaries and associates," it said.

MOFSL said SBI's Q1 profit beat its estimates by 13 per cent, aided by robust treasury gains and controlled opex. NII declined 4 per cent sequentially but was largely in line. NIM contracted 10 bps QoQ and 32 bps YoY to 2.9 per cent. The bank expects FY26 domestic NIMs to be maintained at over 3 per cent, with NIMs anticipated to rebound from 3QFY26 onwards.

"We increase our earnings by 3 per cent/3.5 per cent for FY26/27E to factor in robust treasury gains and controlled opex, and estimate FY27E RoA/RoE at 1.1%/15.5%. Reiterate BUY with a target of Rs 925 (1.2x FY27E ABV)," it said.

Nuvama retained 'Buy' with an unchanged target price of Rs 950. Nirmal Bang suggested a price target of Rs 1,001 on SBI.