The majority of analysts carried a buy or outperform rating on SBI
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Shares of State Bank of India opened higher Monday but quickly reversed course, trading at ₹1,090, down 0.66 per cent from Friday’s close of ₹1,097.20, as investors booked profits following a strong Q1FY27 earnings beat reported last Friday. The stock touched an intraday high of ₹1,113.30 before sliding to a low of ₹1,078.50, with sell orders outpacing buys 59:41 by mid-morning. Traded volume stood at 58.41 lakh shares worth ₹638.85 crore as of 10:16 am. The stock’s market capitalisation stood at roughly ₹10.05 lakh crore.Despite the morning weakness, the broader analyst community remained largely constructive. Of the brokerages that updated their views post-results, the majority carried buy or outperform ratings. CLSA raised its target to ₹1,325, citing a 12 per cent core pre-provision operating profit beat. JPMorgan maintained Overweight with a ₹1,290 target, noting NII came in 3 per cent ahead of estimates. HSBC lifted its target to ₹1,310 from ₹1,180, raising earnings estimates by 9-14 per cent for FY27-29. Jefferies and JM Financial also raised targets to ₹1,320 and ₹1,275, respectively. UBS and Morgan Stanley were more cautious, retaining Neutral stances with targets of ₹1,190 and ₹1,070.The results themselves were broadly well-received. Net profit rose 10.23 per cent year-on-year to ₹21,121 crore in Q1FY27 (quarter ended June 2026), beating most estimates. Net interest income grew 14.88 per cent to ₹46,992 crore, aided by a 7 basis-point sequential improvement in domestic net interest margin to 3.00 per cent, a key talking point given the miss in the prior quarter. Gross advances crossed ₹50 lakh crore, growing 18.63 per cent year-on-year, with management raising full-year credit growth guidance to 14-15 per cent. Asset quality improved to multi-decade lows, with the gross NPA ratio at 1.47 per cent and credit costs at 0.27 per cent.The stock has gained nearly 35 per cent over the past year, outpacing the Nifty 50’s 0.73 per cent return over the same period, and is up around 10 per cent year-to-date. At ₹1,090, the stock trades at roughly 11.75 times trailing earnings, and sits about 12 per cent below its 52-week high of ₹1,234.70 hit in February. The near-term trajectory will likely hinge on whether the NIM recovery proves durable, a point several analysts flagged as critical to their revised forecasts.Published on August 10, 2026
