Buy State Bank of India; target of Rs 1020: KR Choksey

KR Choksey is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 1020 in its research report dated November 11, 2024.

Broker Research

November 12, 2024 / 09:54 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

KR Choksey's research report on State Bank of India

SBIN's earnings was a beat compared to our estimates led by better operating leverage. Net Interest Income (NII) for Q2FY25 increased by 5.4% YoY (+1.2% QoQ) to INR 416,195 Mn. NIMs stood at 3.2% in Q2FY25 vs. 3.3% in Q2FY24 (vs. 3.2% in Q1FY25). SBIN registered a net profit of INR 183,314 Mn in Q2FY25 (+27.9% YoY/ +7.6% QoQ). SBIN’s outlook remains optimistic, with sustained profit growth, improving asset quality, and strategic digital and operational efficiencies positioning it to capitalize on India’s economic expansion. We increase our adjusted book value assumption by 2.4%/ 1.7% for FY25E/ FY26E, respectively, assuming stable asset quality and improving operating performance compared to our previous estimates.

Outlook

We assign a P/ABV multiple of 1.5x to the adj. book value of FY26E and revise our target price to INR 1,020 per share (earlier INR 1,010), with an upside of 20.3%. We maintain our "BUY" rating on the shares of SBIN.

For all recommendations report, click here