Nomura picks SBI as its top banking sector pick amid attractive valuation; check target price

Shares of State Bank of India are in focus on Wednesday (October 9) as Nomura maintains buy on the stock for a target of Rs 980. The new target implies an upside of over 25 per cent.

The brokerage said its time to get back onboard as the state-run lender continues to deliver well on asset quality.

In the previous session, the stock ended nearly 1.6 per cent higher at Rs 782.05 per share on the BSE.

Relatively well-placed amid both tougher deposit conditions and potential rate cuts. The brokerage also said the state-run PSB is  well-positioned on potential tighter draft regulations.

The stock commands attractive valuations at 1x FY26F P/BV and remains the top banking sector pick.

SBI stock

The stock is trading at a trailing twelve-month P/E of 10.11, much lower than the industrial average. The stock has been given a consensus buy from 41 analysts, shows Trendlyne data.

The RSI of the stock is at 43.6 while it is trading above its 200 day SMA or simple above average but below 50 day SMA.