SBI Share Price: Biggest jump in SBI share price since June 2024, becomes Nifty's top gainer

News Topical, Digital Desk : State Bank of India shares saw a strong rally following its Q3 results. SBI shares rose 6% to become the top gainer on the Nifty 50 index (SBI Share Price Today). This is SBI's biggest single-day jump since June 2024. At the end of the December quarter, SBI beat market expectations with a 24% year-over-year increase in net profit. The bank also outperformed private banks like ICICI Bank and HDFC Bank in terms of loan growth. SBI also raised its guidance for the next financial year.

Following the strong results, several brokerage firms have raised their target prices for SBI. According to the latest Bloomberg data, 42 of the 49 analysts tracking SBI have a buy rating on the stock. At least five of these analysts have raised their target prices .

According to analysts, SBI's sequential loan growth has been better than that of PSU banks and large private banks. CLSA stated that SBI has outperformed its peers in loan growth.

Brokerage Reports on SBI

• According to CITI, SBI's margins are expected to remain at or above 3%, and asset quality will continue to be strengthened by disciplined underwriting and credit protocols and recovery.
• Nuvama said that for the third consecutive quarter, SBI's core earnings have been stronger than private banks. The bank's net interest margin has remained stable, loan growth has been higher than the sector, and fee income remains strong.
• According to Bernstein, due to strong growth, better margins and improved asset quality, SBI's return on assets remains above 1 per cent and return on equity remains above 20 per cent.
• Nomura said a significant portion of the re-rating of SBI has already been done and further gains in the stock will primarily come on the back of earnings, rather than higher multiples.

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