SBI Cards & Payment Services Ltd witnessed a surge of 3.82% to ₹847.60 as of 9:49 AM, following Macquarie’s upgrade of the stock to ‘Outperform’ with a revised target price of ₹1,000.
Macquarie noted that credit card slippages are stabilizing, and credit costs are expected to decline significantly over the next two quarters. The brokerage also highlighted key catalysts such as falling interest rates, easing liquidity, and potential tax cuts, which could support further upside. Additionally, RBI’s incrementally softer stance on unsecured loans is seen as a tailwind for the stock.
Despite cutting earnings estimates for FY25-27 by 13-15% due to slower loan growth, net interest income (NII), and fees, Macquarie adjusted its sustainable credit cost projections, resulting in an improved Return on Assets (RoA) by 30 basis points to 4.5%.
With SBI Cards stock nearing its 52-week high of ₹848.60, market participants will be closely watching how macroeconomic and regulatory changes impact the company’s growth trajectory.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research and consult with a financial expert before making any investment decisions.
