Analysts, on aggregate, cut the consensus target by 1.15% to ₹713.76 per share, as per a Bloomberg poll of analysts. This represents a 31% upside potential from the current levels.
“We believe fears regarding a corporate group exposure are overblown (given exposure is limited to 0.9% of loans) and the recent correction is an opportunity to enter the name,” said
in a client note. The brokerage house assigned SBI’s core banking operations a valuation of 1.2 times its FY25 book value.
US brokerage house Jefferies also saw “limited risk” from Adani exposure even if it remains slightly ahead of other public sector banks. It saw a 44% and 61% upside in its base and bull case scenarios. “Like peers, SBI has benefited from a surge in corporate credit demand that has boosted loan growth and upfront repricing of loans. We expect NIMs to peak in the fourth quarter (FY23) or first quarter (FY24), and then start normalising downwards,” the firm said, advising clients to buy the stock. valued the stock at 1.3 times September 2024 book value and believes SBI’s higher mix of floating loans, which will benefit from repricing, will continue to support NII and overall earnings even as the deposit cost could rise.
“Asset quality was strong with tight control on slippages and improvement in headline asset quality ratios, with the restructured book under control at 0.9%,” said the brokerage house in a client note.
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