SBI shares slip post Q1 beat; what Jefferies, JM Financial say
SBI hits a low of ₹1,078.50 amid profit-booking in mid-morning trade
State Bank of India (SBI) shares dipped on Monday following their strong first-quarter earnings report, as investors opted to lock in gains. The stock began the day at ₹1,097.20, but quickly retreated, closing at ₹1,090, a 0.66 percent decline from Friday's finish. Despite trading at a market cap of roughly ₹10.05 lakh crore, the brief sell-off reflected profit-taking rather than broader concern over the bank's performance.
Analysts remained largely supportive, with several firms raising their price targets post-earnings. Jefferies and JM Financial upgraded their ratings and targets to ₹1,320 and ₹1,275, respectively. JPMorgan reiterated its "Overweight" rating with a ₹1,290 target, noting net interest income (NII) surpassed expectations. HSBC raised its price target to ₹1,310, citing a substantial earnings outlook improvement.
While cautious, UBS and Morgan Stanley maintained "Neutral" ratings, with targets at ₹1,190 and ₹1,070. Net profit for Q1FY27 rose 10.23 percent year-on-year to ₹21,121 crore, beating market forecasts, while net interest income grew 14.88 percent. Gross advances surged 18.63 percent year-on-year, and the bank's gross NPA ratio improved to its multi-decade low of 1.47 percent.
The stock has appreciated nearly 35 percent over the past year, outpacing the Nifty 50's modest 0.73 percent gain. Analysts noted NII recovery as a critical factor for revised forecasts, as it currently sits just 12 percent below its 52-week high.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
