SBI Cards and Payment Services said that the green shoots are emerging across the country and witnessing significant movement on all fronts.
SBI Cards and Payment Services share price climbed up nearly 6 per cent to hit a fresh all-time high of Rs 795.50 apiece on BSE, a day the company recorded 13.6 per cent on-year rise in net profit at Rs 393 crore in the April-June quarter for the financial year 2021. The company has posted a net profit of Rs 346 crore in the corresponding period of the preceding year. SBI Cards touched an all-time low of Rs 495.25 apiece on May 22, since then it has rallied 61 per cent. The total market cap of the SBI Cards and Payment Services stood at Rs 73,759.75 crore at the time of writing this report. Research and brokerage firm Prabhudas Lilladher is bullish on the stock with an upside of 30 per cent in target price. SBI Cards said that the green shoots are emerging across the country and witnessing significant movement on all fronts.
“We see SBI Cards geared to return to normalcy sooner than expected with the emergence of green shoots (fall in the unemployment rate to pre-COVID levels, digital transactions uptick), improving corporate spends led by non-discretionary focus (vendor, tax & utility payments & gradual pickup in domestic travels) and increasing Banca potential,” Prabhudas Lilladher said in its recent report. The brokerage firm has given a ‘buy’ rating to the stock with a price target of Rs 974 apiece. It will take SBI Cards to jump 29.52 per cent to touch the target pegged by the brokerage firm. “We confide in management’s demonstration of fair resilience to shocks with hefty provisioning buffer, lower than industry fraud rates, de-risking corporate book and salaried customer focus,” it added.
Meanwhile, SBI Cards informed that the board of directors at a meeting also approved raising of funds by way of issuance of non-convertible debentures (NCDs) aggregating to Rs 1,500 crore in one or more tranches over a period of time. Last week, SBI Cards in a stock exchange filing said that its MD & CEO Hardayal Prasad has taken voluntary retirement from the company. He will cease to be the MD & CEO of the company from July 31.
At 10.45 AM, SBI Cards and Payment Services shares were trading 4.42 per cent higher at Rs 785 apiece, as compared to a 1.15 per cent rise in S&P BSE Sensex.