SBI Stock Forecast: Analysts Expect Strong Gains After Upcoming Q2 Results

With State Bank of India (SBI) set to release its September quarter (Q2) results on Friday, November 8, market experts are optimistic about the stock’s future, projecting significant upside from its current price. As India’s largest bank, SBI holds a promising outlook for investors, despite challenges in net profit growth and narrowing margins in the previous quarter.

Q2 Performance Expectations

For Q2 FY25, analysts predict solid profit growth for SBI, though they caution that provisions could increase, and margins may slightly tighten. Motilal Oswal Financial Services estimates a 14.5% year-on-year (YoY) rise in net profit and a 37.9% YoY increase in operating profit, with net interest income (NII) expected to grow by 5.3% YoY.

According to Manish Chowdhury, Stoxbox’s Head of Research, SBI’s stable metrics — including its low loan-to-deposit ratio (LDR), strong liquidity coverage ratio (LCR), and healthy deposit base — support this optimistic forecast. While a 10-basis-point margin compression is expected, this aligns with broader banking sector trends.

Chowdhury added that although industry loan growth is slowing, SBI is positioned well to gain a larger share in the credit market. The bank is targeting 15% credit growth for FY25, driven by diverse growth across lending segments.

Stock Performance & Price Target

Over the past year, SBI shares have gained approximately 45%, with the stock reaching a 52-week high of ₹912.10 in June. In October alone, it rose 4%, outperforming the Sensex, which fell by 6% in the same period.

Experts suggest that the stock could rise to ₹874 in the short term following Q2 results. “A close above ₹824 is technically favorable,” said Mahesh M Ojha, AVP of Research at Hensex Securities. “We could see further upside to ₹845, ₹860, and ₹874 levels soon, with a recommended stop loss around ₹794.”