Moneycontrol PRO

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 April 30, 2022.

May 03, 2022 / 12:05 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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


SBICARD reported a mixed quarter, with a miss in NII/PPOP, while net earnings delivered a significant beat, aided by a sharp decline in provisions. PAT grew 231% YoY to INR5.8b (MOSLE: INR4.5b). - NIM contracted by 80bp to 13.2% in 4Q (v/s 14% in 3QFY22) due to a significant (-110bp) moderation in yields as the Revolver mix fell to 25% v/s 27% in 3QFY22. Trends in spends both Retail/Corporate was healthy at 40%/102% YoY. Overall spends grew 51% YoY. - GNPA ratio moderated marginally by 18bp QoQ to 2.22%, while NNPA fell 5bp QoQ to 0.78%. RBI-RE book declined to sub-1%. RoA/RoE stood robust at 7%/30.4% in 4QFY22. - We expect the company to deliver 50% earnings CAGR over FY22-24, leading to a RoA/RoE of 7.3%/30.6%. We maintain our Buy rating.


Outlook


We expect the company to deliver 50% earnings CAGR over FY22-24, leading to a RoA/RoE of 7.3%/30.6%. We maintain our Buy rating with a TP of INR1,100 per share (29x FY24E EPS).


For all recommendations report, click here

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 3, 2022 12:05 pm
Sections
ISO 27001 - BSI Assurance Mark