SBI Share Price Surges Following Positive Q4 Results: Is it a Good Investment Opportunity?

The State Bank of India (SBI) witnessed a surge in share price today, climbing over 1% as investors responded positively to the bank’s fourth-quarter results. SBI reported its highest-ever quarterly net profit of ₹20,698 crore, marking a significant 24% growth compared to the previous year. Additionally, the bank anticipates a credit book growth of 14-16% in the current fiscal year, further boosting investor confidence. Asset quality also showed improvement in the March quarter, with Gross NPA decreasing by 2.9% and Net NPA falling by 6.1% QoQ.

Here’s what leading brokerages had to say about SBI’s recent performance:

Emkay Global reaffirmed its ‘Buy’ rating on SBI shares and increased the target price to ₹950 from ₹750. Emkay Global highlighted SBI’s robust credit growth, healthy margins, and impressive profitability, making a strong case for investment.

Kotak Institutional Equities also maintained a ‘Buy’ recommendation on SBI, setting a target price of ₹950 per share. The brokerage emphasized the bank’s consistent loan growth, stable Net Interest Margin (NIM), and solid asset quality metrics as key factors supporting its bullish stance.

Motilal Oswal described SBI’s quarter as steady, with notable revenue growth and robust asset quality contributing to strong control over provisioning expenses. The brokerage projected a Return on Assets (RoA) and Return on Equity (RoE) of 1.1% and 18.5%, respectively, for FY26. Motilal Oswal reiterated its ‘Buy’ rating on SBI shares and raised the target price to ₹925 per share.

Overall, brokerages remain optimistic about SBI’s outlook, citing its strong financial performance and prudent management strategies as reasons for continued investment interest.