Morgan Stanley has maintained an ‘Equal Weight’ rating on SBI Cards, with a target price of ₹650. According to October data, the company’s spending market share remained stable month-on-month at 15.8%. However, on a year-on-year basis, spending fell by 10%, significantly lower than the industry’s 13% growth, reflecting the continued impact of RBI’s corporate card spending notification implemented in February.
Despite this decline, the brokerage highlighted that the company continues to hold a strong market presence, particularly in the retail segment. It also noted that SBI Cards is well-capitalized and equipped to weather short-term regulatory challenges while seeking growth in untapped customer segments. Morgan Stanley expects gradual recovery as the company adjusts its strategies to align with evolving market conditions.
The brokerage remains cautiously optimistic about SBI Cards’ ability to balance profitability and market expansion amid challenging regulatory dynamics.
