Prabhudas Lilladher Recommends 'BUY' on SBI, Sets Target Price at Rs 1200

• Prabhudas Lilladher recommends 'BUY' rating for State Bank of India with a target price of Rs 1200, up from Rs 1100.
• SBI reported a strong quarter, with core PAT surpassing estimates by 14.5% due to improved loan growth, NII/NIM, and asset quality.
• Credit growth was healthy at 15.6% YoY, driven by corporate, SME, and agriculture segments; loan growth guidance for FY26E increased by 1%.
• Net Interest Margin (NIM) rose by 2 basis points QoQ to 2.99%, supported by a 317 basis point increase in Loan-to-Deposit Ratio (LDR) to 81.2%.
• Earnings quality remains strong, leading to a 6.0% average increase in core PAT and 5.0% average increase in core Adjusted Book Value (ABV) for FY27/28E.