SBI shares at 52-week high. Experts predict more rise after strong Q3 results


State Bank of India or SBI share price on Friday made new 52-week high of 546.40 per shares. SBI shares opened with an upside gap of around 2 per shares and went on to scale new 52-week high in early morning deals. However, profit-booking triggered soon and the banking stock ended 10.65 lower from its Thursday close of 540.10 apiece levels on NSE. However, after the strong SBI Q3 results, stock market experts see more gain in the banking stock.

According to stock market experts, SBI share price may go up to 600 per share levels in immediate short term whereas in short to medium term, it may go up to 650 per share levels. They said that SBI has no liquidity problem and after the infrastructure-oriented budget, PSU banks are expected to get benefit of the liquidity demand rising in the infrastructure sector. As SBI is leading lender in India, it is expected to get maximum benefit of this demand and hence its business volume is expected to grow further in upcoming quarters. They advised investors to add this stock in one’s portfolio and hold for short to medium term.

Speaking on SBI share price outlook post-SBI quarterly results; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “SBI has reported strong Q3 earnings as its year-on-year (YoY) net profit has shot up around 62 per cent. SBI has reported strong loan book and asset quality and the PS|U bank has available liquidity to meet the rising credit line demand from the infrastructure sector. aprt from this, its subsidiary companies SBI Card and SBI Life has also reported strong Q3 results. So, one can hold the counter for short to medium term at least whereas those who don’t have this stock in their portfolio can add SBI shares in their portfolio as well.”

Echoing with Avinash Gorakshkar’s views; Sumeet Bagadia, Executive Director at Choice Broking said, “SBI shares are looking positive on chart pattern. On Monday, if the stock opens 5 to 10 higher from its Friday close, then one can buy SBI shares at current market price for immediate short term target of 580 to 600 maintaining stop loss at 525 apiece levels.”

In Q3FY22 results, SBI has reported 62 per cent YoY rise in net profit to 8,431.9 crore. Its Net Interest Income (NII) for Q3 FY2021-22 shot up 6.48 per cent against the corresponding period of the previous fiscal. Home loan, which constitutes 24 per cent of SBI’s domestic advances, has grown by 11.15 per cent against Q3FY21. Additionally, the growth in corporate and small and medium-sized enterprise (SME) segment has also picked up during the third quarter.

The bank’s total deposits grew at 8.83 per cent and the saving bank deposits grew by 10.30 per cent during the third quarter. The current account deposits grew by 7.89 per cent compared with the corresponding period of the previous year.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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