Analysts have maintained their bullish outlook on SBI Cards and Payment Services Ltd even as the company reported weak credit card numbers for September. Analysts at global brokerage Morgan Stanley maintained their ‘overweight’ rating on the stock with a target price of ₹ 1,115 per share implying up to 43% potential upside to shares in the next 12 months.
The brokerage, in a note, mentioned that industry spending rose by 16% year-on-year in September against 32% in August.
Morgan Stanley noted that
SBI Card grew slower at 7% year-on-year in September, while on a monthly basis, it reported a 9% contraction mainly due to a timing difference in festival season. “There is a timing difference in festival season YoY,” it stated.
The brokerage, however, mentioned that daily aggregate October spending was up significantly, by 33% month-on-month.
SBI Cards and Payment Services Ltd (SBI Card) is a non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients.
India’s leading pure-play credit card issuer last week announced the rollout of many offers for its cardholders across the festive season.
It announced up to 27.5 percent cashback and instant discount offers at leading partner brands including Flipkart, Amazon, Myntra, and Reliance Retail group.
The board of SBI Card will meet on October 27 to consider and approve financial results for the September quarter.
SBI Card shares are trading 0.92% higher at Rs 781.55 on BSE at 10.20 AM against a 0.14% rise in the benchmark Sensex.
(Edited by : Ajay Vaishnav)
First Published: Oct 25, 2023 2:04 PM IST
