Why SBI m-cap nosedived over Rs 1 lakh cr in 3 days? Time to buy?

State Bank of India (SBI) shares extended their losing streak to a fourth consecutive session on Tuesday, May 12, following their fourth-quarter earnings announcement last Friday. In early trade on the BSE, the banking major stock slipped 0.80% to trade at Rs 965.70 per share, dipping from its previous close of Rs 973.50. 

SBI market cap erosion

The counter plunged around 11% over the last three trading sessions alone post Q$4FY26 earnings. This sharp three-day slide has wiped out over Rs 1 lakh crore in shareholder wealth, dragging the lender's market capitalisation down to Rs 8.91 lakh crore from over Rs 10 lakh crore a few days ago on May 7.

The state-run lender missed the Street's earnings expectations, dragged down by shrinking margins. Pointing out the pressure points, HDFC Securities noted that SBI earnings missed estimates on the back of a decline in margins (-4bps QoQ). Similarly, PL Capital highlighted that it was a soft quarter due to miss on NII/NIM led by lower loan yields.

SBI target price & ratings

Following the earnings, PL Capital retained 'Buy’ call on the stock, but trimmed its target price to Rs 1,200. PL Capital said, "We trim NII by avg. 2.8% for FY27/28E and cut core PAT by avg 4%.”

Echoing a similar sentiment, HDFC Securities has also backed the PSU giant and kept its ‘Buy’ rating intact, Meanwhile, the brokerage also trimmed its share price target to Rs 1,195 per share from Rs 2000 apiece.

“We believe SBIN is likely to build further on its productivity and efficiency gains, coupled with stable asset quality, driving sustainable RoAs at 1.1%,” HDFC Securities said.