Buy SBI Cards and Payment Services, target price Rs 1000: Emkay Global Financial Services

Emkay Global Financial Services has buy call on SBI Cards and Payment Services with a target price of Rs 1000. The current market price of SBI Cards and Payment Services Ltd. is Rs 829.4. Time period given by analyst is 1 year when SBI Cards and Payment Services price can reach defined target.

SBI Cards and Payment Services, incorporated in the year 1998, is a Small Cap company (having a market cap of Rs 78078.52 Crore) operating in Financial Services sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 3453.32 Crore, up 5.84 % from last quarter Total Income of Rs 3262.85 Crore and up 28.12 % from last year same quarter Total Income of Rs 2695.46 Crore. Company has reported net profit after tax of Rs 525.64 Crore in latest quarter.

The company’s top management includes Mr.Dinesh Kumar Khara, Mr.Rama Mohan Rao Amara, Ms.Anuradha Shripad Nadkarni, Mr.Dinesh Kumar Mehrotra, Mr.Rajendra Kumar Saraf, Dr.Tejendra Mohan Bhasin, Mr.Shriniwas Yeshwant Joshi, Mr.Swaminathan Janakiraman, Mr.Mihir Narayan Prasad Mishra. Company has S Ramanand Aiyar & Co. as its auditors. As on 30-06-2022, the company has a total of 94 Crore shares outstanding.

Investment Rationale
SBI Cards is the country's 2nd-largest credit-card issuing company. The brokerage expects SBI Cards to log a strong cards-in-force (CIF) CAGR, at 18%, and spends CAGR of 30% in FY22- 25E, thereby largely maintaining its market share.

Promoter/FII Holdings
Promoters held 69.64 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.29 per cent, DIIs 16.24 per cent.