Archive · 13 Sep 2025
Analysts Reiterate 'Sell' on SBI Cards Due to Valuation
Analysts suggest investors sell SBI Cards stock.
The initial 'sell' call was made in December 2024, and the stock has since risen.
Despite improved spending and market share, analysts are worried about high credit costs.
Credit costs, which measure the cost of bad loans, remain high.
The company's asset quality is showing slight improvements, but overall performance is mixed.
Valuation appears stretched compared to similar companies, which is influencing the decision.
Analysts reiterate a 'Sell' rating on SBI Cards due to valuation concerns.
Stock price has corrected to ₹856.25 from a 52-week high.
Spends grew 21% YoY in the recent quarter, but credit costs remain high.
Gross stage 3 ratio has improved marginally, while stage 2 assets show improvement.
Growth in receivables is expected to be 10-12% for FY26 due to cautious underwriting.
- Who
- Financial analysts
- What
- Reiterated a 'Sell' rating on SBI Cards & Payment Services.
- When
- Published on September 13, 2025
- Where
- N/A
- Why
- Due to concerns about stretched valuations, weak outlook on credit costs, and modest growth in receivables.
- Current Stock Price
- ₹856.25
- Initial 'Sell' Call Price
- ₹701 (December 1, 2024)
- P/B Ratio
- 5.7x
- H1 FY25 RoA
- 3.4%
- Q1 FY26 Spends Growth
- 21% YoY
- Market Share (Spends)
- 16.6%
- Credit Cost
- 9.6%