SBI shares at Rs 1,000? What market analysts say on strongest Q4 in banking sector

PSU lender State Bank of India (SBI) has reported the strongest Q4 earnings in the banking sector so far, beating expectations on core net interest margin (NIM), core pre-provision operating profit (PPOP) and profit. The bottom line was in fact higher by 49.4 per cent against the consensus expectations, thanks to the base effect of wage revision.

Analysts said there are multiple levers for SBI to cushion loan growth and that buffer provisions are sufficient. This led to revision in earnings estimates and increase in valuation multiples for SBI. Analyst targets see SBI shares rising up to Rs 1,000 level.

Nirmal Bang has rolled forward its valuation estimates to March 2026 and its target multiple for SBI to 1.6 times from 1.4 times. After adding subsidiary valuation of Rs 237.90 per share, it arrived at a target price of Rs 1,003 from Rs 862 earlier.

"We are positive on SBI for the long term considering the bank’s leadership position in Corporate and Retail lending (which enables it to choose best quality credit), ample liquidity on balance sheet (providing stability to its margins) and pristine asset quality," it said.

YES Securities maintained ‘Buy’ rating on SBI with a revised price target of Rs 1,000. While capital ratios remain lower than peers, the SBI management has reiterated headroom for growth, it said adding that the guidance for stable NIM sounded largely believable.

Nuvama Institutional Equities said SBI's Q4 was the strongest earnings in the sector, beating expectations. It noted that SBI's core NIM expanded 4 bps QoQ, starkly against the guidance of contraction.

"We are increasing FY25E/26E EPS by 14 per cent/12 per cent to factor in higher growth and NIM. With the RoA likely to stay above 1 per cent and an RoE of 17 per cent through FY26E, we are lifting the target valuation to 1.5 times from 1.3 times, yielding a target price of Rs 950 (earlier Rs 745)," Nuvama said.

Prabhudas Lilladher said it remains positive on SBI but valuation at 1.3 times post the recent run-up limits upside. "Rolling forward to Mar’26 ABV, we tweak multiple to 1.5 times and raise SOTP based price target to Rs 910 from Rs 770," it said.

Antique Stock Broking said the performance was strong as it upgraded FY25 profit estimate by 9 per cent to factor in better NIMs and lower credit cost. It has 'BUY' with a revised target of Rs 900.