HSBC has reaffirmed its Reduce rating on SBI Card, slashing its target price to ₹580 per share, implying a 23% downside from the current market price of ₹757.00.
The brokerage noted that growth outlook has weakened following Q3 results, while the asset quality outlook remains uncertain. HSBC has cut its EPS estimates by 10.8% for FY25 and 11.2% for FY26 to factor in higher credit costs.
The firm highlighted that improvement in asset quality remains elusive, adding further concerns about the company’s near-term performance. Despite being a key player in India’s credit card market, HSBC remains cautious on SBI Card’s valuation and asset quality risks.
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