SBI Share Price Soars on Friday 📈
The country’s largest public sector bank, State Bank of India, witnessed a strong surge in its share price on Friday. Closing at Rs. 829.90, the stock had reached a high of Rs. 831 during the day, despite a 1.59% decline from the previous day’s low. The stock had touched a high of Rs. 912.10 on June 3, 2024, its 52-week high. In contrast, the stock had hit a 52-week low of Rs. 543.15 in October 2023.
Valuation and Future Outlook
In terms of valuation, SBI is approaching some private sector banks. JM Financial brokerage said that concerns about borrowing for PSU banks are still a topic of discussion. They also mentioned that improvement in borrowing demand will help SBI achieve an increase in loan growth in the near future. The brokerage company has set a target price of Rs. 1,050 for the stock, while maintaining its buy rating. On Monday (June 10, 2024), the stock was trading at Rs. 836, up by 0.79%.
Nomura’s Top Pick
Nomura favors SBI as its top pick, setting a target price of Rs. 1,000 for the stock. The brokerage increased its earnings estimate by 15% for the financial years 2025 and 2026, while reducing its credit cost estimate from 0.55% to 0.4% for the same period. SBI’s net profit increased by 24% to Rs. 20,698.35 crore in the March quarter, compared to Rs. 16,694.5 crore in the same period last financial year. The bank’s board has announced a dividend of Rs. 13.70 per share for the ended financial year on March 31.
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