SBI share price hit record high after Q3; brokerages raise target up to ₹1,300

Core Viewpoint - State Bank of India (SBI) has reported strong Q3FY26 results, surpassing market expectations, which has led analysts to favor the stock as a top investment choice [1] Financial Performance - SBI achieved its highest-ever quarterly profit of ₹21,028 crore, marking a 24.5% year-on-year increase [4] - Net interest income (NII) rose by 9% year-on-year to ₹45,190 crore, with net interest margin (NIM) expanding by 2 basis points to 2.99% [5] - The loan book grew by 15.6% year-on-year and 6.1% quarter-on-quarter, driven by a 7.6% increase in corporate loans and an 11% rise in SME loans [6] Market Reaction - The share price of SBI increased by 6.6% on the National Stock Exchange, reaching an all-time high of ₹1,137 per share during intraday trading [3] - Analysts have raised earnings estimates for SBI, with Emkay Global increasing FY26-28 estimates by 2-4% and Motilal Oswal raising FY27 and FY28 estimates by 3% and 4.3%, respectively [2] Analyst Ratings - A significant majority of analysts, 42 out of 49, have assigned a 'buy' rating to SBI stock, reflecting strong market confidence [3] - Target prices have been adjusted upwards, with Emkay Global setting a target of ₹1,225 and Motilal Oswal at ₹1,300 [2] Asset Quality - SBI's asset quality has shown improvement, with gross non-performing assets (GNPA) and net NPA (NNPA) ratios improving to 1.57% and 0.39%, respectively [12] - The provision coverage ratio (PCR) remains strong at 75.5%, indicating robust risk management [13] Future Outlook - The management anticipates increased lending opportunities due to recent regulatory guidelines from the Reserve Bank of India, which could enhance corporate funding [8] - SBI has raised its credit growth guidance to 13-15% from the previous 12-14%, maintaining an exit NIM guidance of around 3% for FY26 [9][10]