State Bank of India Stock Hits All-Time High at Rs.1211.9

Strong Price Momentum and Market Outperformance

On the day of this milestone, SBI’s stock price increased by 0.26%, outperforming the Sensex’s modest 0.04% rise. The bank has recorded gains for five consecutive trading sessions, delivering a cumulative return of 5.72% during this period. Over broader time frames, SBI’s performance has been notably superior to the benchmark index. The stock has surged 5.85% in the past week versus a 1.15% decline in the Sensex, and over the last month, it has appreciated by 16.19% compared to the Sensex’s 0.32% fall.

Extending the horizon, SBI’s three-month return stands at 24.43%, dwarfing the Sensex’s 1.94% loss. The bank’s one-year performance is particularly striking, with a 66.33% gain against the Sensex’s 9.62%. Year-to-date, SBI has advanced 23.29%, while the Sensex has declined 2.25%. Over three and five years, the stock has delivered returns of 128.10% and 194.00% respectively, significantly outpacing the Sensex’s 36.56% and 61.12% gains. Even on a decade-long basis, SBI’s appreciation of 660.92% far exceeds the Sensex’s 256.29% rise.

Technical Strength Confirmed by Moving Averages

The stock’s technical indicators reinforce its bullish stance. SBI is trading above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained upward momentum. The trading range on the day of the new high was relatively narrow at Rs.8.45, indicating controlled price movement amid strong demand.

Robust Financial Performance Underpinning the Rally

SBI’s latest quarterly results for December 2025 highlight its strong financial health. The bank posted its highest-ever Profit After Tax (PAT) of Rs.21,028.15 crore, reflecting solid profitability. Net Interest Income (NII) also reached a record Rs.45,190.36 crore, underscoring effective lending and interest margin management. Gross Non-Performing Assets (NPA) ratio stood at a low 1.57%, indicating prudent credit risk management and asset quality.

Net profit growth has been impressive, with an annualised rate of 39.26%, supporting the stock’s upward trajectory. The bank’s Return on Assets (ROA) is 1.1%, while the Price to Book Value ratio is 2.1, reflecting a premium valuation relative to peers. The Price/Earnings to Growth (PEG) ratio is elevated at 14.8, driven by the stock’s rapid price appreciation compared to profit growth of 3.5% over the past year.

Market Position and Institutional Confidence

With a market capitalisation of Rs.11,14,966 crore, SBI remains the largest company in the Public Sector Bank sector, accounting for 50.45% of the sector’s total market cap. Its annual sales of Rs.4,79,872.11 crore represent 37.48% of the industry’s revenue, highlighting its dominant market presence.

Institutional investors hold a significant 37.53% stake in SBI, reflecting confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with stability and long-term commitment to the stock.

Mojo Score Upgrade Reflects Positive Momentum

On 11 Aug 2025, SBI’s Mojo Grade was upgraded from Hold to Buy, with a current Mojo Score of 71.0. This upgrade recognises the bank’s improving fundamentals and market performance. The Market Cap Grade remains at 1, indicating its status as a large-cap heavyweight within the sector.

Comparative Sector and Index Performance

SBI’s stock has consistently outperformed the BSE500 index across multiple time frames. Over the last three years, it has delivered 128.10% returns compared to the BSE500’s 36.56%. Its one-year and three-month returns of 66.33% and 24.43% respectively also surpass the index’s negative returns during these periods. This outperformance highlights SBI’s resilience and leadership within the Public Sector Bank sector.

Valuation Considerations

While the stock’s premium valuation reflects investor confidence, it also indicates a higher price relative to book value and earnings growth. The ROA of 1.1% and Price to Book Value of 2.1 suggest that the stock is trading at a premium compared to historical averages of its peers. The PEG ratio of 14.8 further emphasises the disparity between rapid price gains and more moderate profit growth. These factors are important for understanding the stock’s current market pricing.

Summary of the Stock’s Journey to the All-Time High

State Bank of India’s ascent to Rs.1211.9 marks a significant milestone in its market journey. The stock’s steady gains over the past five days, combined with strong quarterly results and dominant market position, have propelled it to new heights. Its consistent outperformance relative to the Sensex and BSE500 indices over short and long-term periods underscores the bank’s robust fundamentals and investor confidence.

The upgrade in Mojo Grade to Buy and a solid Mojo Score of 71.0 reflect the bank’s improving financial metrics and market standing. Institutional backing and a commanding share of sector market capitalisation further reinforce SBI’s leadership role in the Public Sector Bank industry.

While valuation metrics indicate a premium pricing environment, the stock’s sustained upward momentum and strong earnings growth provide a comprehensive picture of its current market position.

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