SBI (State Bank of India) is one of the largest banks. SBI Bank is owned by the Indian government. In the last 1 year, SBI stock has given more than 53% but in the next 2 to 3 years the stock can give another 30% to 40% return very easily. There are many reasons behind it and you can read them in the SBI share price target for 2024, 2025, and 2026.
Not only SBI bank most of the banks will give returns in the future. High returns can be expected in the PSU bank stock and private sector banks too. Because most probably in 2024 we may see a few interest rate cuts that will help banking sector stocks to make more profit as a result the share prices will go up.
The PE ratio of many banks is very low or very close to near all-time low. In the future, when the PE starts moving up, the bank’s stock prices will also increase very rapidly. Many low-cap and mid-cap banks have very high potential to give a return of more than 100% in the next few years.
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About SBI
SBI (State Bank of India) is one of the largest PSU banks in India. The bank was founded in 1955 and as of now its current managing director is Shri. Challa Shetty. It is a government-owned bank.
SBI is involved in the business of banking and finance. The bank provides many types of services like savings accounts, current accounts, home loans, personal loans, loans against property, gold loans, education loans, business loans, investments, debit & credit cards, and many more services and products a bank provides.
Like other bank services, the SBI also provides many services like health insurance, Life insurance, many govt schemes, and many more.
Company Fundamentals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of company among the all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, It is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of the SBI (State Bank of India) were last updated on 18 Feb 2024. Check the latest information on any broker website or screener.
Net Profit & Loss (Yearly)
| Year | Net Profit & Loss (In Crore) |
|---|---|
| March 2019 | ₹3,069 |
| March 2020 | ₹18,177 |
| March 2021 | ₹24,280 |
| March 2022 | ₹36,356 |
| March 2023 | ₹56,558 |
Net Profit & Loss (Quarterly)
| Quarter | Net Profit & Loss (In Crore) |
|---|---|
| Dec 2022 | ₹15,670 |
| Mar 2023 | ₹18,343 |
| Jun 2023 | ₹18,736 |
| Sep 2023 | ₹16,383 |
| Dec 2023 | ₹11,283 |
Company Fundamentals
| Market Cap | ₹6,73,585Cr | ROE | 18.85% |
| P/E Ratio (TTM) | 10.56 | EPS (TTM) | 71.48 |
| P/B Ratio | 1.84 | Div Yield | 1.50% |
| Industry P/E | 14.24 | Book Value | 410.55 |
| Debt to Equity | NA | Face Value | 1 |
Shareholding Pattern
| Held By | Jun 2023 | Sep 2023 | Dec 2023 |
|---|---|---|---|
| FIIs | 10.36% | 10.72% | 10.91% |
| DIIs | 24.83% | 24.36% | 24.15% |
| Public | 7.30% | 7.41% | 7.40% |
| Promoters | 57.47% | 57.49% | 57.49% |
| Government | 0.03% | 0.03% | 0.03% |
Key Points
- The revenue growth of the SBI has grown continuously in the last 5 years.
- Profit growth of the SBI has grown continuously drastically in the last 5 years.
- The current ROE of the SBI is very healthy and analysts are expecting it will keep moving up with time.
- In the long term, the company has given a negative revenue growth in the last 3 years.
- The SBI has cash of Rs. 771.60 Crore while the Debt on the SBI is near Rs. 2,01,820.50 Crore.
- In the 2023 – 2024 the EPS of the State Bank of India is at an all-time high.
- In the 4 years from March 2020 to March 2023, the company tripled its net profit. It means the profit has grown by 30% in just 3 to 4 years.
Quarterly Results
State Bank of India’s net profit and EPS have been continuously growing for the last few years. Even when the interest rates are very high. Hope you know, the Government is planning to cut the interest rates in 2024.
In the Dec 2023 quarter, the net profit of the SBI Bank was much less as compared to the last 5 quarters. In the Dec 2023 quarter, the SBI showed a profit of Rs. 11,283 Crore but there is no major downfall seen in the stock. Even the stock is going up and made a new all-time high.
Thumb Rules for Investing
Just by doing fundamental analysis, anyone cannot book maximum returns on the stocks. Based on the investors’ experiences a few basic rules become the rules for investing. In short, most retail investors or newbie investors make the below mistake as a result they do not get the maximum return on their investing.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the directions to make your self psychology strong.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case you invested all the money in one sector, if the sector faces any issue, you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
SBI Share Price Target
From October 2023, many banks like Kotak Mahinda Bank, HDFC Bank, SBI Bank, and many more banks start showing growth and according to the experts it is just starting of bull run in the banking sector stocks.
There are only a few problems in the SBI financial i.e. ROA is a very low and high cost-to-income ratio. In the future, these can be easily managed and other financials of the stock will be good.
The PE ratio of most of the banks is very low but started going up slowly in the last few months. The PE Ratio of a stock and stock price are linked to each other in some cases so, when the PE ratio increases the stock price will also increase.
Disclaimer: We are not SEBI registered. The post is only for educational purposes not for any investing advice. Do your analysis or ask your financial advisor before investing. We will not be responsible for any loss or profit.
SBI share price target 2024
From November 2023, the Indian stock market is very bullish and the FIIs and DIIs are investing a lot of money in the market. As the Indian is a growing country there is a huge opportunity to make money from investments.
As we also mentioned earlier the SBI stock is also very bullish and has given more than a 25% return in from Jan 2024. Most probably in the upcoming months, a real bull run can happen in the stock.
So, if you are a short-term trader then you can take the opportunity but make sure you are taking trade with proper stoploss.
SBI share price target 2025
According to many expert analysts, the interest rate is at its peak and most probably start going down in 2024. As you know, if the interest rates will go down people will start taking loans and start spending on the desired things.
Once people start taking loans the financials of most banks will automatically improve and they will start making more profits. However, the current profits of the Banks are also good.
In 2025, you can expect targets in the SBI share price near Rs. 900 to Rs. 1000.
SBI share price target 2026
Mostly investors and analysts recommend the SBI stock to buy. There are very high chance that in the years 2024 and 2025, the PE ratio of the SBI and other PSU banks will start recovering. With the increase in the PE ratio with stock price will also increase.
For the long term investing the level can be good but as the market is very volatile, there can be a fall of a few percent in the upcoming months. As you are investing for the long term then you’ll make a profit definitly.
When the SBI stock breaks its all-time high and sustains above the all-time high, there is a high chance that the stock will give a good return. In 2026, you can see the target of near Rs. 1000 – 1200 if the SBI stock breaks its all-time high.
FAQs
As of Feb 2024, the stock is trading near Rs. 754 which approx near its all-time high. Investing in any stock that is fundamentally good and trading at least 10 – 15% low from its all-time high can be good. Investing through SIP can also help to manage risk.
As the PE ratio of all the PSU and private sector banks is very low and these stocks are also not given any returns in the last few years. According to many experts and analysts, all the banking stocks will give good returns in the next few years. Avoid low-cap bank stock to reduce risk.
In short, yes SBI share is very good for the long term as the stock is very stable and one of the largest banks in India. In large-cap stocks, there are limited returns but the risk is also very low.
Final Words: SBI (State Bank of India) is one of the largest banks in India. In the last few years, the has not given any good returns due to many factors. The PE of the many bans becomes very low and according to many experts when the PE of the stocks increases the SBI share price target for 2024, 2025, and 2026 will also be massive.