SBI share price extends gains as analysts remain bullish after upbeat Q4 results; Should you buy the stock?

State Bank of India (SBI), the state-run largest lender successful the country, reported its highest-ever quarterly nett net of ₹20,698 crore successful the 4th fourth of FY24, registering a maturation of 24% from ₹16,694.5 crore successful the twelvemonth agone quarter. 

The PSU lender’s absorption expects to turn its recognition publication by 14-16% successful the existent fiscal year, reflecting the wide optimism astir home growth. It projected deposit maturation of 12-13% for FY25.

Read here: SBI projects optimism successful itself, system aft beardown Q4

Asset prime of the slope improved during the March 4th arsenic Gross NPA decreased 2.9% and Net NPA declined 6.1% QoQ. 

“SBI logged a beardown all-around amusement successful 4Q, with robust recognition maturation astatine 16% YoY, steadfast margins astatine 3.3%, and a beardown 14% PAT beat," said Anand Dama, Senior Research Analyst astatine Emkay Global Financial Services.

Factoring successful the steadfast NIMs/fees, treasury gains, little opex and contained LLP—a inclination to beryllium seen crossed PSBs, and much truthful for SBI, Emkay Global raised its net estimates for FY25-26E by 9-14% and expects a sustained beardown RoA and RoE astatine 1.1% and 17-18%. 

It retained a ‘Buy’ standing and raised SBI stock terms people to ₹950 apiece from ₹750 earlier.

Also Read: BPCL, HPCL shares leap up to 5% post-Q4 earnings, should you buy, sell, oregon hold? Here's what experts say

Kotak Institutional Equities maintained a ‘Buy’ telephone connected SBI shares with a people terms of ₹950 apiece. The brokerage said that the bank’s dependable indebtedness growth, unchangeable NIM and coagulated plus prime metrics were cardinal highlights. It expects SBI to spot comparatively unchangeable show going ahead. 

Brokerage steadfast Motilal Oswal said that SBI reported a dependable 4th with dependable maturation successful revenues, portion robust plus prime helped the slope support beardown power implicit provisioning expenses. 

It estimates SBI to present RoA and RoE of 1.1% and 18.5% successful FY26. Motilal Oswal maintained its ‘Buy’ telephone connected SBI and raised the people terms to ₹925 per share.

At 9:50 am, SBI shares were trading 0.13% higher astatine ₹820.70 apiece connected the BSE.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 10 May 2024, 09:53 AM IST