Buy SBI Cards and Payment Services; target of Rs 1100: Motilal Oswal

Motilal Oswal is bullish on SBI Cards and Payment Services recommended buy rating on the stock with a target price of Rs 1100 in its research report dated July 28, 2022.

Broker Research

July 30, 2022 / 10:43 PM IST

Rama Steel Tubes: Nomura Singapore buys 1 lakh shares in Rama Steel Tubes. Nomura Singapore bought 1 lakh equity shares in the company via open market transactions on June 15. These shares were acquired at an average price of Rs 371 per share.

live

bselive
nselive

Volume

Todays L/H

Motilal Oswal's research report on SBI Cards and Payment Services

SBICARD reported a robust quarter on key business metrics and its net earnings delivered a strong beat aided by lower provisions. PAT thus grew 106% YoY to INR6.3b (MOSLe: INR5.3b). Margin was stable QoQ at 13.2% in 1QFY23. Revolver mix increased to 26% from 25% in 4QFY22. Trends in both retail and corporate spends were strong at 68% YoY and 130% YoY, respectively. Overall spends thus rose 79% YoY. GNPA/NNPA ratio stood stable QoQ at 2.24%/0.79% with PCR at ~65%. RBIRE book declined to INR1.5b. 1QFY23 RoA/RoE stood robust at 7.0%/30.8%.

Outlook

We estimate SBICARD to deliver 52% earnings CAGR over FY22–24, leading to an RoA/RoE of 7.4%/31.4%. Maintain BUY with an unchanged TP of INR1,100 (premised on 28x FY24E EPS).

For all recommendations report, click here