SBI shares climb past Rs 900 levels; m-cap breaches Rs 8 lakh crore mark for the first time

SBI share price NSE, SBI share price target: SBI shares in Monday’s trade (June 3) saw stellar gains to the tune of 10 per cent, taking the stock to its all-time high of Rs 909.3 per share on the BSE. The buying action in the stock is triggered on the back of broad-based gains in the Nifty Bank index amid euphoria around the likely BJP-win based on the exit poll prediction. Meanwhile, Nifty Bank index rose as much as 4 per cent to a record high of 50,990.

On the sharp gains, the state-run lender’s market capitalisation breached Rs 8 lakh crore for the first time and at the last count stood at Rs 8,09,908.53 crore.

Earlier post the lender’s results, Axis Securities gave the most bullish target price for the stock at Rs 1010. The brokerage maintained that loan growth and margin sustenance are unlikely to remain a challenge for the country’s leading state-run bank. Also, improving fee income profile, reducing operating expenses and declining credit cost would aid the bank in delivering healthy RoA/RoE of 1.2%+/18%+ over the medium term, estimates the brokerage.

Also, the brokerage is of the belief that the counter warrants a re-rating on account of the expected sustenance of RoA above the 1%+ levels and therefore it retained its ‘buy’ view on the stock.

From the day’s high and considering this target, the stock still offers an upside potential of 11 per cent.

The stock research platform Trendlyne also has a consensus 'buy' recommendation on the stock from 42 analysts, with 26 of them giving a 'strong buy' call on the stock.

SBI Q4FY24 results

SBI in its March quarter results posted a standalone net profit of Rs 20,698.35 crore, up 24 per cent on-year given the higher interest income and low provisions. In the same quarter last year, bank reported a net profit of Rs 16,694.5 crore. On a sequential basis, the lender’s profitability more-than-doubled. It was reported at Rs 9,163.96 crore posted in the December quarter of FY24.