SBI share price jumps 4% on upgrades from top brokerages, strong September quarter results

SBI Share Price: Buoyed by strong September quarter results and rating upgrades by top brokerages, the State Bank of India (SBI) shares were trading with might on Monday. The stock quoted Rs 616 apiece on the NSE, gaining over 4 per cent in the early trade.

Goldman Sachs upped the target to Rs 770 from Rs 728, estimating over Rs 170 per share gains for the investors. The American investment bank and financial services company recommended this stock at a price of Rs 594. 

The rationale given by it is the strong September quarter results which beat street’s estimates and were “arguably one of the best” in the banking space during this season along with its private peers ICICI Bank and Kotak Mahindra Bank. It has increased SBI’s FY23E -FY24E net profit estimates by up to 13.9/2.5 per cent.

It has maintained a buy in this stock.        

Meanwhile, JP Morgan maintains ‘Overweight’ on the state lender and has revised the targets upwards to Rs 720 from 650.

Source: NSE

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The bank on Saturday reported its highest ever quarterly profits led by 19 quarter high loan growth and strong core operating profit performance. The net profit grew 74 per cent Year-on-Year (YoY) and 119 per cent Quarter-on-Quarter (QoQ) to Rs 13,264 crore. The net interest margins (NII) were up 13 per cent YoY and 13 per cent QoQ to Rs 35,183 crore for the reporting quarter. Net interest margins expanded by 30 bps sequentially to 3.32 per cent.

The stock trades at 1.1X  FY24e P/BV adjusted for subsidiaries valuation.

The Core Operating Profit (ex-treasury gains) grew by 17 per cent YoY and 7 per cent QoQ to Rs 20660 crore.  

On the provisions front, a 31 per cent QoQ decline to Rs 3040 crore was reported.

Around 1,45,798.82 shares were trading around 10:30 am. 

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)