SBI's March Quarter Profit Falls 10%, Share Price Declines for Five Consecutive Days; Brokerages Maintain Buy Recommendation.
SBI share price: SBI's net profit for the March 2025 quarter stood at ₹18,643 crore, down approximately 9.9% compared to the same quarter last year (₹20,698 crore). This decline is attributed to higher provisions made by the bank. However, compared to the previous quarter (December 2024 or Q3FY25), SBI's profit increased by 10.4%. The bank reported a profit of ₹16,891 crore in the previous quarter.
Share Performance:
- SBI's share price has fallen by approximately 4.62% over five trading sessions.
- On Monday (May 5th), the stock closed 1.26% lower at ₹790.
- It remains approximately 13% below its 52-week high of ₹912.
- Over the past month, the stock has risen by 2.89%, and by 3.12% over the past three months.
- However, the share is down 5% year-to-date and up 6.97% over the past six months.
- Over the past three years, SBI has delivered a return of 64.6%.
Full-Year Performance:
In fiscal year 2024-25, SBI recorded a record net profit of ₹70,901 crore, reflecting a year-on-year growth of 16.08%. The bank has recommended a dividend of ₹15.90 per share for this year, higher than last year's ₹13.70.
Brokerage House Views:
Motilal Oswal
Rating: Buy
Target Price: ₹915
Upside: Approximately 16%
The company has slightly lowered its earnings estimates for FY26 and FY27 but highlighted the bank's b fundamentals.
Nuvama Institutional Equities
Rating: Buy
Target Price: ₹950
Upside: Approximately 20%
Nuvama states that SBI has outperformed its peers in loan growth and has stemmed margin decline.
Systematix Institutional Equities
Rating: Buy
Target Price: ₹940
The brokerage believes the bank's current valuation is attractive and offers long-term growth potential.
Investor Advice – What to Do?
Despite the market downturn and weaker quarterly results, SBI's long-term fundamentals remain b. The bank's stable loan growth, good dividend record, and buy recommendations from major brokerage houses suggest that SBI could be an attractive investment option despite the recent decline.
For long-term investors, this decline may present a buying opportunity. However, it is advisable to consult your financial advisor before making any investment decisions.
(Disclaimer: This article is for informational purposes only. Consult your financial advisor before making any investment decisions.)
