Stock Performance and Market Context
On the day of this milestone, SBI’s stock price rose by 0.79%, outperforming its sector by 1.11%. The stock has recorded gains for two consecutive days, delivering a cumulative return of 4.2% over this period. Notably, SBI is trading above all key moving averages – the 5-day, 20-day, 50-day, 100-day, and 200-day averages – signalling a strong upward trend and positive investor sentiment.
In contrast, the broader market benchmark, the Sensex, opened lower by 265.21 points and was trading at 83,878.35, down 0.42%. Despite this, the Sensex remains close to its own 52-week high, just 2.72% shy of 86,159.02, and has recorded a three-week consecutive rise with a 2.87% gain. However, the Sensex is currently trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating a cautiously optimistic market environment.
Strong Long-Term Returns and Sector Leadership
Over the past year, SBI has delivered an impressive 62.61% return, significantly outperforming the Sensex’s 10.14% gain during the same period. The stock’s 52-week low was Rs.679.65, highlighting the substantial appreciation in value over the last twelve months. This performance cements SBI’s position as the largest company in the public sector banking sector, with a market capitalisation of Rs.10,91,982 crores, representing 49.84% of the entire sector’s market cap.
In terms of sales, SBI’s annual revenue of Rs.479,872.11 crores accounts for 37.48% of the industry, further emphasising its dominant market presence.
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Financial Metrics Driving the Rally
SBI’s recent quarterly results released in December 2025 provide insight into the factors underpinning the stock’s rally. The bank reported its highest-ever Profit After Tax (PAT) at Rs.21,028.15 crores, alongside a record Net Interest Income (NII) of Rs.45,190.36 crores. These figures reflect strong core banking operations and effective lending practices.
Moreover, the bank’s Gross Non-Performing Assets (NPA) ratio stood at a low 1.57%, indicating prudent risk management and asset quality. This low NPA ratio is a key factor in sustaining investor confidence and supporting the stock’s upward trajectory.
Institutional investors hold a significant 37.53% stake in SBI, reflecting confidence from entities with extensive analytical resources and long-term perspectives. This institutional backing often contributes to stock price stability and momentum.
Valuation and Growth Considerations
While SBI’s return on assets (ROA) is 1.1%, the stock currently trades at a premium valuation with a price-to-book (P/B) ratio of 2. This valuation is higher than the average historical valuations of its peers, reflecting market recognition of the bank’s leadership and growth prospects.
However, the price-to-earnings-to-growth (PEG) ratio stands at 14.5, indicating that the stock’s price appreciation has outpaced profit growth, which increased by 3.5% over the past year. This suggests that the market is pricing in sustained performance and quality metrics rather than rapid profit expansion alone.
Consistent Market-Beating Performance
SBI’s market-beating returns extend beyond the last year. The stock has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating consistent strength relative to the broader market. This sustained outperformance is supported by the bank’s dominant sector position, robust financials, and prudent management.
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Summary of Key Indicators
State Bank of India’s recent price milestone at Rs.1197.95 is supported by a combination of strong quarterly earnings, low asset quality risks, and significant institutional ownership. The bank’s market cap dominance and sales contribution to the sector further reinforce its leadership position.
Despite trading at a premium valuation, the stock’s consistent outperformance relative to the Sensex and BSE500 indices highlights its resilience and quality within the public sector banking space. The current momentum is underpinned by solid fundamentals rather than speculative factors, as evidenced by the bank’s robust financial metrics and prudent management of credit risk.
As of 11 Aug 2025, MarketsMOJO upgraded SBI’s Mojo Grade from Hold to Buy, reflecting improved confidence in the stock’s prospects based on its financial and market performance. The current Mojo Score stands at 71.0, indicating a favourable outlook within the public sector bank industry.
Conclusion
State Bank of India’s ascent to a new 52-week high marks a significant achievement in its market journey. The stock’s strong gains over the past year, supported by record quarterly profits, low NPAs, and institutional backing, have propelled it to this milestone despite broader market fluctuations. Trading above all major moving averages and outperforming its sector, SBI continues to demonstrate robust momentum and market leadership within the public sector banking sector.
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