YES Securities' research report on SBI Cards and Payment Services
SBI Cards delivered a handsome beat of 6%/12%/24% on our Income/PPOP/PAT estimates, and it was driven by robust spends growth, uptick in revolvers’ share, contained opex intensity and a stable quality underpinning moderate credit cost. RoA and RoE stood at 7% and 31% respectively, which were a multi-year high.
We now estimate RoA/RoE delivery of 6%/26% over FY23-24 which factors a 25 bps MDR reduction (with partial recoup through opex). Reiterate BUY with 12m PT of Rs1260.
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