SBI Cards and Payment Services shares gained nearly 2% in early trade today after the company reported an increase in cards issuance and spending for October. As of the latest update, the stock is reflecting a bullish sentiment among investors.
Key Metrics for October 2024:
- Card Issuance Growth: Up 9.6% year-on-year (YoY).
- Spending Growth: Increased by 14.9% month-on-month (MoM).
- Market Share: Spending market share remained stable at 15.8% MoM.
Morgan Stanley’s Take:
- Rating: Maintains an ‘Equal Weight’ rating.
- Target Price: ₹650.
- Key Observations:
- Spending fell by 10% YoY, underperforming the industry growth of 13%.
- Decline attributed to the lingering impact of the Reserve Bank of India’s (RBI) corporate card spending notification issued in February 2024.
