Buy State Bank of India; target of Rs 907: LKP Research

LKP Research is bullish on State Bank of India has recommended buy rating on the stock with a target price of Rs 907 in its research report dated February 08, 2025.

Broker Research

February 10, 2025 / 12:35 IST

Buy

26 Aug, 2025 12:21

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LKP Research's research report on State Bank of India

State Bank of India (SBI) delivered a decent quarterly performance supported by healthy growth in its business and sustained profitability. The bank’s NIM moderated on higher cost of deposits and is expected to remain range bound in the near term as deposit rates are expected to remain sticky despite recent repo rate cut. However, the impact of rate cut on margins is expected to be minimal due to its lower share of repo linked loans. Further, the bank’s asset quality continues to remain strong, in a challenging macro environment with prudent provisioning policies and tightening underwriting. Additionally, the bank’s operating efficiency improved, partly aiding profitability.

Outlook

Hence, with a strong balance sheet position and an optimistic economic outlook, we assign BUY rating on the stock with a Sumof-the-Parts (SOTP)-based target price of ₹907.

For all recommendations report, click here