Geojit's IPO report on SBI Cards
SBI Cards & Payment Services (SBI Cards) is the leading issuer of credit cards in India. Incorporated in October 1998 as a joint venture between State bank of India and GE Capital. Later in December 2017 State Bank of India and Carlyle Group acquired GE Capital’s stake in the company. Company offers Indian consumers access to a wide range of world-class, value added payment products and services. At present SBI cards operates through a footprint of more than 130 cities in India.
Valuation and Outlook
At the upper price band of Rs 755, SBI Cards is available at P/E of 46x FY20, Valuation looks justified taking into consideration the historical high growth rate. •Given strong parentage and sustainability of growth rate with huge potential for digital payments in India, we recommend ‘SUBSCRIBE’ to the issue with a longterm perspective.
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