Moneycontrol PRO
HomeNewsBusinessStocksNeutral SBI Cards; target of Rs 975: Motilal Oswal

Neutral SBI Cards; target of Rs 975: Motilal Oswal

Motilal Oswal recommended Neutral rating on SBI Cards with a target price of Rs 975 in its research report dated April 24, 2025.

April 25, 2025 / 22:27 IST
Neutral

Neutral

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on SBI Cards

SBI Cards (SBICARD) reported a 5% miss on PAT, which stood at INR5.3b in 4QFY25. The share of the revolver mix was flat at 24% and management expects the revolver mix to have a downward bias toward 23%. NIMs improved to 11.2%. Spends grew 2.6% QoQ (up 11% YoY), led by 15% YoY growth in retail spends, while corporate spends declined 17% YoY (up 63% QoQ). GNPA ratio improved to 3.08% (down 16bp QoQ), while NNPA ratio increased by 28bp QoQ to 1.46% as SBICARD made changes in ECL-3 classification, resulting in a decline in PCR to 53.5% (down 1,089bp QoQ).

Outlook

We raise our FY26E/FY27E EPS by 7.4%/9.9%, factoring in improvement in credit cost, rate cuts and improvement in margins. Reiterate Neutral with a revised TP of INR975 (22x FY27E EPS).

For all recommendations report, click here

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.

SBI Cards - 25042025 - moti

Broker Research
first published: Apr 25, 2025 10:27 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347