State Bank of India (SBI) share price fell in early trade on May 16 after the company reported its March quarter earnings on May 13.
SBI reported a 41 percent year-on-year rise in net profit at Rs 9,113.5 crore, which was below Street's estimate of Rs 9,927.6 crore.
Net profit was highest ever but shares slipped a little over one percent in response to the results.
Profit growth came on the back of 15.3 percent growth in net interest income which stood at Rs 31,198 crore, lower than analysts' expectations of Rs 31,570 crore.
Non-interest income disappointed, slipping 27 percent year-on-year. But on a sequential basis, it jumped 37 percent while net interest income growth was a mere 1.6 percent.
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Here is what brokerages have to say about the stock and company after earnings:
Nomura
The broking firm has maintained a buy rating on the stock with a target of Rs 615.
The credit cost is near historical lows, net interest margin or NIM is steady and growth is picking up.
FY23 should reflect a normalised RoA and RoE (return on asset and equity) at 0.8 and 15 percent respectively, CNBC-TV18 reported.
Credit Suisse
Research firm Credit Suisse has maintained an outperform rating with a target of Rs 600 per share as execution is on track; RoEs climb to 14 percent.
The bank can sustain current level of growth to support its steady rerating. The company remains amongst preferred picks.
Research firm cut FY23/24 estimates by three percent on treasury losses, CNBC-TV18 reported.
Morgan Stanley
The broking house has kept an overweight rating on the stock and cut the target price to Rs 580 from Rs 615.
The company missed profit estimate by 10 percent owing to lower fees/higher investment provisions.
Expect continued uplift in earnings as growth/rate cycle turns, CNBC-TV18 reported.
Macquarie
The research house has kept an outperform rating on the stock with a target of Rs 665.
The strong performance came on the back of asset quality and loan growth. The scope to expand margins exists as 74 percent are floating rate loans, CNBC-TV18 reported.
Kotak Institutional Equities
The brokerage has maintained a buy rating on the stock with a target of Rs 700.
Balance sheet is strong and capital adequacy ratio comfortable to meet loan growth, CNBC-TV18 reported.
At 09:19 hrs State Bank of India was quoting at Rs 441.20, down Rs 3.85 or 0.87 percent on the BSE.
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