3 weeks ago
SBI shares slip despite strong Q1 results, brokerages bullish
SBI is one of India's biggest banks, and it just told everyone how much money it made in the last three months.
The news was good — the bank made more profit than many people expected.
But when the stock market opened on Monday, SBI's shares went down instead of up.
One reason is called profit booking: people who bought shares earlier sold them to lock in their profits.
When more people sell than buy, the price falls.
SBI's profit grew by about 10% compared with the same time last year.
The bank is also handling bad loans better, which is a good sign.
Two expert finance firms, JM Financial and Emkay Global, still say the shares are a good buy.
They think the share price will go higher in the future.
So even though the price dipped, many experts believe SBI is doing well.
SBI shares fell up to 1.49% on the NSE on Monday, hitting an intraday low of ₹1,078, despite Q1FY27 results that beat market estimates.
The bank posted a 10.23% year-on-year rise in standalone net profit to ₹21,121.22 crore for the June quarter.
Interest income rose 14.88% YoY to ₹46,992 crore, while the GNPA ratio improved to 1.47% from 1.49%.
Provisions jumped to ₹5,047 crore from ₹2,872 crore in the previous quarter, though credit cost stayed flat at 0.27%.
Brokerages JM Financial and Emkay Global retained 'buy' ratings, raising target prices to ₹1,275 and ₹1,350 respectively.
- Who
- State Bank of India (SBI), which reported Q1FY27 results; brokerages JM Financial and Emkay Global remain bullish on the stock.
- What
- SBI's share price fell up to 1.49% on the NSE despite June-quarter results that exceeded market estimates.
- Where
- National Stock Exchange (NSE), India.
- When
- Monday, 10 August, after results were announced on Friday, 7 August.
- Why
- Shares declined amid profit booking, while brokerages remain bullish on margins, credit cost, and growth.
Key facts
- Share decline
- Up to 1.49% on NSE on 10 August; intraday low ₹1,078
- Q1 standalone net profit
- ₹21,121.22 crore (up 10.23% YoY)
- Interest income
- ₹46,992 crore (up 14.88% YoY)
- Gross NPA ratio
- 1.47% (down from 1.49%)
- Net NPA ratio
- 0.38% (down from 0.39%)
- Provisions
- ₹5,047 crore vs ₹2,872 crore in previous quarter
- CRAR
- 15.67% (up from 14.63%)
- Brokerage target prices
- JM Financial ₹1,275; Emkay Global ₹1,350
Quotes
JM Financial
Research analyst at brokerage firm JM Financial
““We tweak estimates and continue to expect healthy broad‑based growth, supporting a normalized ROA/ROE of ~1.0%/~15% (ex one‑off gains from subsidiaries or investments). We retain BUY and raise TP by ~10% to Rs1,350 (roll forward to Jun‑28E ABV), valuing SBI at 1.4x Jun‑28E ABV and its subsidiaries/investments at Rs352/share. Risks: Macroeconomic slowdown hurting growth/asset quality and higher treasury losses.””
livemint.com
““With stable‑to‑improving margins supported by FCNR(B) flow, muted credit cost and healthy growth are expected to drive profitability in FY27. We are increasing EPS estimates by 3–5%, expecting the bank to deliver average RoA/RoE of ~1%/14.6% over FY27–28E. We maintain BUY with a revised TP to INR 1,275 (from INR 1,200), valuing the standalone bank at 1.4x FY28E BVPS (1.3x earlier).””
livemint.com
Sources
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