ICICI Direct has given Buy recommendation for SBI Cards and Payments with a target price of Rs. 1000 in its research report issued on May 02, 2022
ICICI Direct’s research report on SBI Cards and Payments
SBI Cards is subsidiary of State Bank of India (69.2% stake) and is the second largest credit card issuer in India. Market share in terms of cards issued is 18.9% and spends is 19.2% • High margin business with strong return ratios, +5% RoA and +20% RoE.
We maintain BUY rating on the stock. We value SBI Cards at ~34x FY24E EPS (~8x FY24E ABV) and maintain our target price at Rs 1000.