Brokerage firm ICICI Direct valued the State Bank of India at about 1.25x FY25E ABV and subsidiaries at RS 183/share to arrive at a revised target price of Rs 750 from Rs 700 earlier, which implies an upside potential of 30% from the current market price of Rs 574 per share.
“SBI, after getting impacted by corporate NPAs, has reported a consistent improvement in business growth as well asset quality. Accelerated growth, steady margins and lower credit cost are expected to drive RoA further. Thus the stock, long due for re-rating, should see strong positive momentum. Hence, we retain our buy rating on the stock,” said the brokerage firm.