Macquarie has retained a Neutral rating on SBI Cards and Payment Services, with a target price of ₹1,040, implying an upside of approximately 17% from the current market price of ₹891.10.
The company reported a Q1FY26 profit after tax of ₹5.6 billion, down 6% year-on-year and 18% below Macquarie’s estimates. The miss was primarily attributed to higher-than-expected credit costs, which came in at 9.6% versus the brokerage’s forecast of 9%.
Despite the upside potential, Macquarie flagged valuation concerns, noting the stock appears expensive at 4.3x FY27E price-to-book value for a return on assets (RoA) trajectory of 3.5% and sub-par growth outlook.
Disclaimer: This article is based on Macquarie’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
