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Buy SBI Cards and Payments; target of Rs 1000: ICICI Direct

ICICI Direct is bullish on SBI Cards and Payments has recommended buy rating on the stock with a target price of Rs 1000 in its research report dated May 02, 2022.

May 03, 2022 / 09:53 AM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

 
 
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ICICI Direct's research report on SBI Cards and Payments


SBI Cards is subsidiary of State Bank of India (69.2% stake) and is the second largest credit card issuer in India. Market share in terms of cards issued is 18.9% and spends is 19.2% • High margin business with strong return ratios, +5% RoA and +20% RoE.



Outlook


We maintain BUY rating on the stock. We value SBI Cards at ~34x FY24E EPS (~8x FY24E ABV) and maintain our target price at Rs 1000.

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first published: May 3, 2022 09:53 am
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