Should you buy SBI shares for long term now?

Should you consider buying State Bank of India (SBI) shares for the long-term now? Many analysts have a positive outlook on SBI shares citing several reasons, including its strong market position, robust earnings visibility, and improving asset quality. As of Monday’s close, the SBI stock has lost 12.6 per cent of its value so far in 2025, underperforming a 1.0 per cent decline and a modest 1.7 per cent gain in the Nifty 50 and Nifty Bank indices respectively.

Citi upgrades SBI to ‘buy’, raises target by over 15% to Rs 830

Citi has upgraded SBI to ‘buy’ from ‘sell’ while raising its target price for the stock to Rs 830 from Rs 720. The foreign brokerage’s target implies a potential upside of 19.4 per cent in the stock.

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SBI Valuation

Citi values SBI at a price-to-book value multiple of 0.85.

How other analysts view SBI stock

Last month, Ventura Securities initiated coverage on SBI with a ‘buy’ rating and a target price of Rs 1,049 per share, valuing the stock at a price-to-book value estimate of 1.5 times FY27 earnings.

However, the brokerage highlighted the following risks to its call:

• Slower-than-anticipated economic growth
• A sharp rise in interest costs
• Potential deterioration in asset quality

SBI Q3 FY25 Results Summary

For the quarter ended December 31, the state-run bank staged a better-than-expected financial performance.

Its standalone net profit grew 84 per cent to Rs 16,891 crore while net interest income (NII) increased 4.1 per cent to Rs 41,620 crore for the third quarter of the current financial year, according to a regulatory filing.

According to Zee Business research, SBI was estimated to register a net profit of Rs 16,240 crore.

Its net interest margin (NIM), a key measure of profitability for a lender, was recorded at 3.15 per cent for the December quarter, marking a decline of 12 basis points sequentially. READ MORE ON LATEST SBI RESULTS

How SBI shares have fared vs Nifty Bank, HDFC Bank, other major peers

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