Jefferies and Motilal Oswal led the bullish chorus with Rs 1,300 price targets, citing robust return on equity prospects and a ₹354-per-share valuation for subsidiaries as the state-owned lender reported a third-quarter net profit of ₹21,030 crore, an 18% beat on estimates driven by higher fee income and lower-than-expected provisions.
“SBI stays among our top-picks in the sector with Buy rating & PT of Rs1,300 (earlier Rs1,190), valuing bank at 1.5x Mar-28E adj P/B,” Jefferies said, raising earnings estimates by 2-4% for fiscal 2027-28 and projecting 12% compound annual growth in core profit over fiscal 2026-28. The brokerage highlighted the bank’s 11% CET-1 capital adequacy ratio, healthy return on equity, and scope to monetize stakes in businesses to support growth.
Motilal Oswal matched the ₹1,300 target, valuing the lender at 1.4 times fiscal 2028 adjusted book value plus ₹354 for subsidiaries, while raising earnings estimates by 3% and 4.3% for fiscal 2027-28. The brokerage projected fiscal 2027 return on assets and return on equity at 1.1% and 15.9%, respectively.
“Asset quality improved further, with slippages moderating and credit cost staying benign at 29bp,” Motilal Oswal said. “The bank sounded confident about the overall credit environment.”
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Net interest income grew 9% year-on-year and 5% quarter-on-quarter to ₹45,190 crore, in line with estimates. Net interest margin stood at 2.99%, a 2-basis-point sequential improvement, with domestic margins expanding 3 basis points to 3.12%. The bank expects margins above 3% in fiscal 2026 and the long term.
Nomura raised its target price to ₹1,235 from ₹1,100, valuing the core bank at 1.4 times December 2027 book value per share, up from 1.3 times previously, with subsidiaries contributing ₹250 per share. “The higher target multiple reflects an improved RoE outlook,” the brokerage said.JP Morgan maintained its Overweight rating and lifted its September 2027 price target 2.5% to ₹1,250 from ₹1,220, revising fiscal 2026 earnings estimates by 7% while keeping fiscal 2027-28 forecasts broadly unchanged.
“SBI’s results reinforce our positive thesis: the bank is delivering above-system growth, maintaining best-in-class asset quality, and expanding profitability,” JP Morgan said.
Morgan Stanley kept its equal weight stance, raising fiscal 2026 earnings estimates by 8% given the strong third quarter but maintaining fiscal 2027-28 forecasts. The brokerage cited near-full valuations, with its target implying 1.3 times core fiscal 2027 book value, noting better-than-expected revenue growth would be a key upside catalyst.
BofA Securities struck a more cautious note, maintaining its Neutral rating with a new price objective of ₹1,100 from ₹1,050, revising earnings per share estimates up 5-9% on improved growth and margin assumptions.
“At current valuations (FY27E standalone PB 1.2x and PE 9x), we see risk-reward is roughly balanced,” BofA said. “We see scope for mid-cap PSBs to narrow their valuation discount with SBI.”
The loan book grew 15.6% year-on-year and 6.1% quarter-on-quarter, while deposits expanded 9% and 2%, respectively. The CASA ratio moderated 50 basis points sequentially to 39.1%.