Big Step From Digital Banking: SBI Card Share Price
SBI Card Share Price today is 1.075,95 USD with a volume of 299.823. At the same time, its chart fluctuates between 1.069,50 USD – 1.084,45 USD. SBI Card Share Price was a maximum of 1.139,50 USD and a minimum of 552,50 USD within 52 weeks. Its average volume is 2.631.702, and it is ranked 101.249 in the MarketCap listings. The target point of SBI Card Share Price at the end of 1 year is not clear yet. Face value of the share is 10 and dividend yield of the share is 0,09. Its book value per share is 0,00.
SBI Card and Payment Services Limited (SBI Card)
SBI Cards and Payment Services is a company in India that provides payment solutions. Previously known as SBI Cards. In October 1998, State Bank of India and GE Capital, India’s largest bank, launched the SBI Card.
In December 2017, GE Capital’s stake in the company was acquired by the State Bank of India and The Carlyle Group. Headquartered in Gurgaon, Haryana/Delhi NCR, SBI Card has branches in over 100 cities across India. For the fiscal year ended March 31, 2016, the company reported a net profit of 271 crore and a pre-tax profit of approximately 438 crore.
SBI Card target price is Rs 1205 and ICICI Securities has purchased SBI Card. The current SBI Card Share Price is Rs 943.05.
SBI Cards is a small capital (market cap 91578.96 Crore) company focused on the Financial Services sector.
Shareholding of SBI Card and Payment Services Limited (SBI Card)
State Bank of India held a 60% stake in SBICPSL and a 40% stake in GE Capital Business Processes Management Services Limited. In 2017, GE Capital outlined a different strategy to exit the financial services industry. It terminated its joint venture with the State Bank of India as part of its global strategy. Following this strategy, State Bank of India increased its share to 74%. Additionally, The Carlyle Group has invested 26% in both entities as it replaces GE Capital. The purpose of doing this is a plan to combine both entities into a single entity.
New Brand Identity SBI Card
In February 2019, SBI Card announced its designed new brand identity. The new brand identity announced reflects the contemporary and youth-oriented look of the brand. It also reveals that it is in an effort to establish a stronger bond with millennial consumers.
The logo change that followed the brand change was also a new arrangement for SBI Card. The logo consists of the blue Keyhole and the SBI sign, and the style of the word “Card” has been changed to a more accessible font.
Financials of SBI Card
For the last quarter of 2020, the company reported a 1.08% increase compared to the last quarter and achieved Independent Total Revenue of 2539.77 Crore. Total Revenue of 2512.73 Crore and a decrease of 91% compared to the same quarter of last year. The company has announced that it has net profit after tax of 209.66 Crore Rs in the last quarter.
Why Invest in SBI Card Share?
With high growth and entry barriers, the company continues to provide a constructive service on the Indian credit card business opportunity. SBI Cards is one of the best placed operators in this field. Robust business triggers are also on the rise, with increasing digitization, prosperity and increasing consumer loan penetration. The current business and distribution share provides strong commercial moats. SBI Card Share Price rating is Rs30.1 based on 40x FY23E. SBI Card Share Price target is Rs1,205.
Should You Buy SBI Card Share?
State Bank of India shares hit a record price of Rs 433 on February 18, 2021. Price performance before that was 426Rs. SBI Card Share Price affected its performance. Let’s examine the other factors affecting the price increase.
Several brokerages rated the results for the quarter ended March 31, 2021 on behalf of the company as excellent. State Bank of India’s 4QF21 results are beyond spectacular. The bank disclosed that the company experienced a decrease of just Rs 54.7 billion in 4QF21.
As noted in an Emkay Global Financials report, Q4 was extremely strong for the company, with a 9% PAT jump at Rs 64.5 billion providing better-than-expected asset quality performance. The company reported encouraging numbers compared to other companies in the industry.
Target Price of SBI Card Share
Different brokerage houses have different ideas for the SBI Card share price. Some brokerages increase the target price in SBI. However, Motilal Oswal sets a target of Rs 530 for the SBI Card share price while Emkay Global sets a price target of Rs 600.
Motilal Oswal made a statement for the SBI Card share price. In his statement, he stated that he expects to provide 2E/FY23E RoE at a rate of 13.9/15%. The rating for SBI Card share price is set to Get, with a revised target price of Rs 530 per share.
Emkay Global also made a different statement for the stock. According to his statement, the company could do well with a sharp revision to the target price of Rs 600 compared to the previous Rs 460 price. The stock has a strong 50% upside move signal.
SBI Card Increases Equity Asset Quality
The decrease in non-regressive assets caught the attention of some investors. According to the Oswal report, although the bank’s gross troubled assets cost has dropped 15% in 2021, its coverage has increased from 40% four years ago to 71% now.
Although Emkay Global’s thoughts on company assets are good in general, it is considered that it will be necessary to wait and monitor the impact of the second wave of Covid-19 on the results of the first quarter of 2021-22.
4% Drop in Opening Trade
SBI Card share price fell more than 4% in its opening trade on the Bombay Stock Exchange (BSE) on Wednesday. This may be because it has been announced that US private equity fund CA Rover Holdings, a branch of Carlyle Asia Partners, will sell its stake in the company through a deal.
On top of that, SBI Card share price had to open lower at Rs 1,008 compared to the previous closing price of Rs 1,022.10. The company’s stock fell as much as 4.39 percent and the price dropped to Rs 977.20. Also, following these developments, the market capitalization of the company decreased to Rs 92,820.46.