SBI Cards shares will bring profit or loss, what is the opinion of the brokerage company


SBI Cards and Payment Services’ earnings were weaker than expected. At the same time, the margin also decreased.

SBI cards and payment services stocks see big drop Today, stocks are down almost 7% to Rs 800. Whereas it closed at Rs 858 on Thursday. On Thursday, the company released results for the September quarter. The company’s earnings were weaker than expected. At the same time, the margin also decreased. Equity brokerages are also mixed on this. Some advised to ADD, some to sell, and some to buy. At the same time, some lowered the target.

ADD Equity Board

Brokerage house Yes Securities advised ADD on SBI Cards and Payment Services shares. The target of Rs 1,020 was retained for the shares. The broker says the decline in RoA/RoE came as a negative surprise. The company’s PAT was 21 percent weaker than estimates. Income is also 2 percent less than estimated. The RoA/RoE ratio decreased to 5.4%/24% from 7%/30% in the last 2 quarters. However, expenses and growth in receivables are strong. There is a decrease in NIM. The brokerage company reduced profits by 6-8% for the 23/24 financial year. The broker says that if we look at the stock valuation, there is room for a slight increase.

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Buy stock advice

Brokerage house Motilal Oswal gave advice on investing in shares of SBI Cards and Payment Services. The target price of the share is kept at the level of 1000 rubles. Brokerage houses say the September quarter was moderate for the company. Earnings were impacted by higher provisions. Margins declined quarterly due to higher funding costs.

Although credit growth is better. Due to the moderation of expected credit losses, the cost of credit can remain under control. During FY22-24, brokerage services are expected to see a 41% CAGR of PAT. At the same time, RoA and RoE are estimated at 6.5% / 28.2% during this period. In September 2022, the company launched the “Cashback SBI Card”, which continues to be of interest to customers.

they hit the target

Brokerage house CLSA has set a target of Rs 795 while giving a sell rating on the shares. Whereas Credit Suisse lowered its target price to Rs 1,080.

(Disclaimer: Brokerage advice on investing in stocks. This is not the personal opinion of The Financial Express. Markets are risky, so listen to the experts before investing.)


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