Morgan Stanley has maintained its equal-weight rating on SBI Card and Payments stock/share, setting the target price at ₹685, reflecting a +1.33% upside from the current market price of ₹676.00.
Key highlights from Morgan Stanley’s report on SBI Card and Payments stock:
- EPS Estimates Adjusted:
- FY25 EPS projections have been reduced by 4.7%, primarily due to revised growth assumptions.
- Outspending Growth Lowered:
- The outspending growth forecast has been trimmed to ~4% YoY from the earlier ~10% YoY projection.
- Receivables growth has also been revised to ~15% YoY from the earlier ~23% YoY.
- Credit Cost Assumptions Raised:
- FY25 credit cost assumption increased by 10 basis points to 8.65%, reflecting a cautious stance on credit risks.
- Higher NIMs and Lower Credit Costs:
- Adjusted assumptions for FY26 and FY27 reflect a ~5% increase in EPS estimates, driven by higher Net Interest Margins (NIMs) and reduced credit costs.
- Impact on Valuation:
- The revised earnings and cost dynamics contribute to a ~5% increase in scenario values and the price target.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisors before making investment decisions.
