SBI share price at a 52-week low, down over 20% in 9 months. Is it a stock to buy?

SBI share price hit its fresh 52-week low of ₹710.90 in intraday trade on Monday, February 24, amid a widespread market selloff. The banking stock opened at ₹712.65 against its previous close of ₹721.55 and dropped 1.5 per cent to the 52-week low of ₹710.90. However, the stock pared losses as around 1 PM, it traded 0.59 per cent down at ₹717.30.

SBI share price trend

SBI share price has been under pressure in the recent past. On a monthly scale, the stock has been falling since December.

Shares of the banking major hit a 52-week high of ₹912.10 on June 3 last year. This means SBI shares have plunged 22 per cent to hit their 52-week low of ₹710.90 in about nine months.

SBI: Is it a stock to buy?

Due to its solid fundamentals, SBI stock remains a long-term buy. Most experts expressed their positive view of the stock after the company’s stellar December quarter earnings.

On February 6, SBI reported an 84.32 per cent year-on-year rise in its standalone net profit for Q3FY25 to ₹16,891.44 crore. The bank’s gross NPA ratio for the December quarter was 2.07 per cent, down from 2.13 per cent in September, while the Net NPA remained at 0.53 per cent, matching the 0.53 per cent recorded in the previous quarter.

While the stock remains a buy for the long term, some headwinds could create turbulence for it in the near term.

An Incred Research Services (InCred Equities) report highlighted that the average return on equity (RoE) of the stock is unsustainable as the repo rate cut cycle may impact the bank’s core earnings.

“The average RoE of nearly 16-17 per cent delivered over the past few years by SBI appears unsustainable. We expect its RoE to moderate to 13-14 per cent during FY26F-27F as credit costs normalise (to 50bp from 36bp in FY25F) and core earnings are impacted by the repo rate cut cycle,” Incred said.

“We expect RoA (return on assets) to moderate to 0.8 per cent over FY26F-27F, from nearly 1 per cent during FY25F. Leverage at 16 times will drive a sharper decline in RoE,” said Incred.

Incred finds SBI’s valuation inexpensive. However, the equity research firm pointed out that the stock lacks rerating potential as profitability is set to moderate.

Finding better risk-reward ratio at large private banks, Incred has downgraded the stock to a ‘hold’ and reduced the target price to ₹795 from ₹1,100 earlier.

What do technical indicators indicate?

Technical experts highlighted that the stock is in a well-defined trading zone and that traders should buy it at the current juncture.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that SBI has been consolidating within the ₹710-736 range for the past week, indicating a balance between buyers and sellers.

“A comparison of last and current week’s pivots (S1 and R1) suggests no significant breakout or breakdown, confirming a lack of initiative activity beyond this range. This signals a well-defined trading zone,” Patel said.

“Traders can capitalize on this by buying around ₹714-716, expecting a move toward the ₹735 target. A stop-loss below ₹705 on a daily closing basis ensures risk management,” said Patel.

Read all market-related news here

Read more stories by Nishant Kumar

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.