Jefferies has reiterated its Hold call on SBI Card, raising the target price to ₹795 per share, suggesting a potential 6% upside from the current price of ₹750.25. The company is expected to benefit from easing short-term rates, which should support net interest margin (NIM) in the second half of the year.
However, spending growth remains weak in the near term, and credit costs are anticipated to rise in Q2 and stay elevated in the short term. Card customer acquisition (CIF) growth may improve as economic stress eases, with corporate spending likely to recover gradually. Profits and return on equity (RoE) are expected to improve post FY25, but near-term concerns about asset quality could weigh on valuations.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
