SBI share price: Experts see healthy returns after Q2 results 2024

With the September quarter earnings of India’s largest bank by total assets, State Bank of India, just around the corner, analysts have turned bullish on the stock, forecasting a healthy upside from its current market price.

SBI will announce its September quarter (Q2) results on Friday, November 8.

In the first quarter of the current financial year, SBI's net profit remained almost flat. Its net interest income (NII) rose 5.7 per cent year-on-year, while the net interest margin (NIM) dropped 12 basis points (bps).

SBI stock Q2 expectations

For Q2FY25, the bank is expected to report a healthy rise in profit, but higher provisions could occur, and margins may witness a slight compression.

According to brokerage firm Motilal Oswal Financial Services, SBI may report a 14.5 per cent year-on-year (YoY) rise in net profit while operating profit may rise 37.9 per cent YoY. Net interest income (NII) for the quarter increased 5.3 per cent YoY.

According to Manish Chowdhury, the head of research at Stoxbox, the bank may report healthy performance and profitability this quarter.

Chowdhury underscored that the bank has one of the lowest domestic LDR, a strong LCR, and a robust regulatory retail deposit base.

"During the quarter, we can see NIM compression by 10bps, as management said. However, it remains in line with the overall banking sector. During Q1, the slippages were quite high. However, management has stated that the slippages are seasonal, and they are not worried about the underlying quality," said Chowdhury.

"Although overall loan growth in the sector is moderating, we believe SBI has a solid opportunity to capture a larger credit market share. SBI expects credit growth to be nearly 15 per cent for FY25, supported by broad-based credit growth across segments. Given these circumstances, we believe SBI, a leading public sector bank, will likely show solid performance this quarter, with a positive fundamental outlook ahead," Chowdhury said.

SBI share price trend

SBI shares have seen healthy gains in the last one year. The stock has risen about 45 per cent over the last year. It hit a 52-week high of ₹912.10 on June 3, while a 52-week low of ₹555.25 on November 22 last year.

On the monthly scale, the stock rose 4 per cent in October even as market benchmark Sensex declined 6 per cent.

SBI stock target price

Experts believe the stock may potentially rise to the level of ₹874 in the near term after Q2 results.

"Technically, a close above ₹824 is good for the stock. Further, we may see an upside to ₹845, ₹860 and ₹874 levels in the coming days. One can keep a stop loss near ₹794," said Mahesh M Ojha, AVP — Research at Hensex Securities.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.