Should you buy, sell or hold on to SBI Card shares? What top brokerages suggest
SBI Card share price: SBI Cards and Payments Services shares succumbed to selling pressure for a second straight day on Wednesday, after the credit card issuer's quarterly numbers fell short of analysts' estimates.
SBI Cards and Payments Services — the issuer of credit cards under brand SBI Card — continued to face selling pressure for a second back-to-back session on Dalal Street on Wednesday, after the company reported a set of financial results that fell short of Street estimates.
During market hours on Tuesday, SBI Card reported a 32 per cent jump in net profit to Rs 509 crore for the October-December 2022 period and revenue growth of 16 per cent to Rs 3,656 crore compared with the corresponding period a year ago. Growth in interest income, and income from fees and services boosted SBI Card's total revenue in the three-month period, according to a company statement.
According to Zee Business research, SBI Card was estimated to report a quarterly net profit of Rs 595 crore.
The company's margin — a key measure of a business's profitability — shrank by 129 basis points to 13.93 per cent, according to SBI Card.
Here's what brokerages make of SBI Card shares after the credit card issuer's earnings announcement:
Brokerage | Rating | Target | Upside/downside vs Tuesday's closing price |
CLSA | Reduce | 750 | +0.5% |
Morgan Stanley | Overweight | 925 | +24% |
Credit Suisse | Outperform | 1,080 | +44.7% |
JPMorgan | Neutral | 800 | +7.2% |
HSBC | Hold | 830 | +11.2% |
Nomura | Buy | 1,030 | +38% |
CLSA upgraded SBI Card to 'reduce' from 'sell' but reduced its target price for the stock by Rs 35 to Rs 750. The company's quarterly net profit missed the brokerage's estimates by a 2-5 per cent shortfall across major parameters.
The company's net interest margin hit a multi-quarter low despite a stable share of revolvers, CLSA pointed out. In credit card parlance, a revolver is the balance a borrowers can carry forward to the next month by paying additional interest.
Morgan Stanley retained an 'overweight' rating on the SBI Card stock but brought down its target price by Rs 75 or 7.5 per cent to Rs 925.
JPMorgan, HSBC and Nomura lowered their targets for SBI Card shares by Rs 60-145.
Catch LIVE stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
10:46 AM IST