Top brokerages see up to 20% upside for SBI stock in a year

Core Insights - SBI's standalone profit after tax increased by 10% year-on-year to ₹20,160 crore in Q2, surpassing expectations of a profit decline [1][7] - The bank's asset quality improved, with net NPA decreasing to 0.42% from 0.53% a year earlier [1][7] Financial Performance - Analysts noted that SBI's operational performance remains solid even when excluding one-time gains from the Yes Bank stake sale [2][7] - ICICI Direct has revised its price target for SBI to ₹1,120, indicating a potential upside of 17% from the previous close of ₹954.6 [2][7] - Emkay Global maintains a buy rating on SBI with a price target of ₹1,100, suggesting a 15.2% upside [7] Market Trends - SBI's shares have appreciated by 9.2% in the past month and 20.3% in 2025, reflecting renewed investor interest in public sector banks [3][7] - Public sector banks are experiencing a shift in investor interest away from private peers, with SBI's results reinforcing the growth narrative for the sector [2][3][7] Derivative Market Activity - Following the strong earnings report, traders have established new bullish positions in SBI's derivative contracts, with a notable increase in open interest [6][7] - The rollover of SBI futures to November was recorded at 84%, below the three-month average of 93.5% [6][7] Future Outlook - Analysts are optimistic about SBI's continued profitability improvement, supported by a favorable macro environment and effective management of provisions [7]