SBI shares fall for fifth straight session – Should you buy?

SBI share price: State Bank of India (SBI) shares extended their losing streak on Tuesday, dropping over 1% during the day. This marks the fifth consecutive session of declines for the public sector banking heavyweight. 

At last check, the counter was trading 1.02% lower at Rs 943.45 apiece on the BSE, down from its previous close of Rs 954. Broadly, the scrip has shed nearly 3% over the last five sessions.

SBI share price target

In its latest annual report update on SBI, brokerage firm Motilal Oswal Financial Services (MOFSL) maintained its bullish stance on the lender, highlighting its structural strengths.

The brokerage in its report reiterated its ‘Buy’ recommendation on the banking counter. MOFSL has assigned a share price target of Rs 1,300 for SBI, which hints about 37% upside potential from the current levels of Rs 943.

The brokerage valued the core banking business at 1.4x FY28E Adjusted Book Value (ABV) and added Rs 352 per share for its various institutional subsidiaries.

“State Bank of India (SBIN)’s FY26 annual report highlights that the bank has steadily strengthened its balance sheet and consistently delivered healthy RoE while maintaining its leadership position,” MOFSL said.

The brokerage estimates SBI’s margins to successfully sustain at 2.8% over FY27. Supported by low provision costs and structural domestic visibility, MOFSL projects an 8% earnings CAGR for SBI over the FY26-28 period, expecting the lender to deliver solid return on asset (RoA) and return on equity (RoE) metrics of 1% and 15.5%, respectively, by FY28.

“The top 20 NPA concentration has reduced drastically to 11.8% as of Mar-26 from 29.1% on Mar-25, reflecting improved corporate health and granularity in underwriting,” MOFSL said.