With the new RBI policy, credit card companies like SBI cards are on the back foot. At the time of updating this article, SBI Cards is trading at Rs. 730 INR per share.
Financially, with significant revenue and profit growth over the past three years, SBI Cards and Payment Services has been doing well. What about the future, though? We’ll examine SBI Cards’ share price goal for the years 2024 to 2030 in this post and attempt to respond to the question on everyone’s mind: Is SBI Cards and Payment Services a wise investment? So, take a seat back, unwind, and let’s investigate the options.
SBI Cards and Payment Services Q3 FY24 Results Summary
- Net Profit: Rs 549 crore, an 8% increase from the previous year’s Rs 509 crore.
- Total Income: Grew by 30% to Rs 4,742 crore compared to Rs 3,656 crore in the same quarter of the previous fiscal year.
- Operating Costs: Increased by 23% to Rs 2,426 crore for Q3 FY24, up from Rs 1,974 crore in the previous fiscal.
- Gross Non-Performing Assets (NPA): Rose to 2.64% in Q3 FY24, up from 2.22% a year ago.
- Net NPA: Increased to 0.96% from 0.80% at the end of the December quarter of the previous financial year.
- Impairment Losses and Bad Debt Expenses: Grew to Rs 883 crore from Rs 533 crore in FY23.
- Capital Adequacy Ratio: Recorded at 18.4% as of December 31, 2023, compared to 23.1% as of March 31, 2023.
- RBI Capital Adequacy Norms: Mandate a capital-to-risk ratio not less than 15% of aggregate risk-weighted assets on the balance sheet and risk-adjusted value of off-balance sheet items.
Below are the trading platforms that you can use to purchase SBI Cards and Payment Services shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| April 2024 | 788.40 | 685.57 |
| May 2024 | 776.75 | 675.43 |
| June 2024 | 804.71 | 699.75 |
| July 2024 | 796.66 | 692.75 |
| August 2024 | 828.53 | 720.46 |
| September 2024 | 861.67 | 749.28 |
| October 2024 | 844.78 | 734.59 |
| November 2024 | 870.12 | 756.63 |
| December 2024 | 891.87 | 775.54 |
As of April 2024, SBI Cards’ share price currently sits at ₹730 with a market cap of ₹69,454 Cr. The projected share price targets for 2024 range between ₹685.57 to ₹891.87, showcasing potential growth. SBI Cards’ high/low in the past year stands at ₹933/₹679, with a stock P/E of 29.7 and a book value of ₹116.
| When | Maximum Price | Minimum Price |
| January 2025 | 909.71 | 699.78 |
| February 2025 | 933.04 | 717.72 |
| March 2025 | 969.43 | 745.71 |
| April 2025 | 950.42 | 731.09 |
| May 2025 | 922.73 | 709.80 |
| June 2025 | 964.26 | 741.74 |
| July 2025 | 945.35 | 727.19 |
| August 2025 | 974.59 | 749.68 |
| September 2025 | 1,008.70 | 775.92 |
| October 2025 | 1,034.93 | 796.10 |
| November 2025 | 1,060.80 | 816.00 |
| December 2025 | 1,087.32 | 836.40 |
In 2025, SBI Cards’ share price targets show a projected increase, ranging from ₹699.78 to ₹1,087.32 throughout the year. This suggests potential growth for investors. SBI Cards continues to demonstrate upward momentum in its stock performance and market outlook for the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,119.94 | 861.49 |
| February 2026 | 1,148.65 | 883.58 |
| March 2026 | 1,193.45 | 918.04 |
| April 2026 | 1,170.05 | 900.04 |
| May 2026 | 1,135.97 | 873.82 |
| June 2026 | 1,187.09 | 913.15 |
| July 2026 | 1,163.81 | 895.24 |
| August 2026 | 1,199.81 | 922.93 |
| September 2026 | 1,241.80 | 955.23 |
| October 2026 | 1,274.09 | 980.07 |
| November 2026 | 1,305.94 | 1,004.57 |
| December 2026 | 1,338.59 | 1,029.68 |
In 2026, SBI Cards and Payment Services’ share price targets indicate substantial growth potential, with prices projected to range from ₹861.49 to ₹1,338.59 throughout the year.
| When | Maximum Price | Minimum Price |
| January 2027 | 1,365.36 | 1,050.28 |
| February 2027 | 1,400.37 | 1,077.21 |
| March 2027 | 1,454.98 | 1,119.22 |
| April 2027 | 1,426.46 | 1,097.27 |
| May 2027 | 1,384.91 | 1,065.31 |
| June 2027 | 1,447.23 | 1,113.25 |
| July 2027 | 1,418.85 | 1,091.42 |
| August 2027 | 1,462.73 | 1,125.18 |
| September 2027 | 1,513.93 | 1,164.56 |
| October 2027 | 1,553.29 | 1,194.84 |
| November 2027 | 1,592.12 | 1,224.71 |
| December 2027 | 1,631.93 | 1,255.33 |
| When | Maximum Price | Minimum Price |
| January 2028 | 1,664.57 | 1,280.44 |
| February 2028 | 1,707.25 | 1,313.27 |
| March 2028 | 1,773.83 | 1,364.48 |
| April 2028 | 1,739.05 | 1,337.73 |
| May 2028 | 1,688.40 | 1,298.77 |
| June 2028 | 1,764.37 | 1,357.21 |
| July 2028 | 1,729.78 | 1,330.60 |
| August 2028 | 1,783.28 | 1,371.75 |
| September 2028 | 1,845.69 | 1,419.76 |
| October 2028 | 1,893.68 | 1,456.68 |
| November 2028 | 1,941.02 | 1,493.09 |
| December 2028 | 1,989.55 | 1,530.42 |
| When | Maximum Price | Minimum Price |
| January 2029 | 2,029.34 | 1,561.03 |
| February 2029 | 2,081.37 | 1,601.06 |
| March 2029 | 2,162.55 | 1,663.50 |
| April 2029 | 2,120.14 | 1,630.88 |
| May 2029 | 2,058.39 | 1,583.38 |
| June 2029 | 2,151.02 | 1,654.63 |
| July 2029 | 2,108.84 | 1,622.19 |
| August 2029 | 2,174.06 | 1,672.36 |
| September 2029 | 2,250.16 | 1,730.89 |
| October 2029 | 2,308.66 | 1,775.89 |
| November 2029 | 2,366.38 | 1,820.29 |
| December 2029 | 2,425.54 | 1,865.80 |
| When | Maximum Price | Minimum Price |
| January 2030 | 2,474.05 | 1,903.11 |
| February 2030 | 2,537.48 | 1,951.91 |
| March 2030 | 2,636.45 | 2,028.04 |
| April 2030 | 2,584.75 | 1,988.27 |
| May 2030 | 2,509.47 | 1,930.36 |
| June 2030 | 2,622.39 | 2,017.23 |
| July 2030 | 2,570.97 | 1,977.67 |
| August 2030 | 2,650.49 | 2,038.84 |
| September 2030 | 2,743.26 | 2,110.20 |
| October 2030 | 2,814.58 | 2,165.06 |
| November 2030 | 2,884.94 | 2,219.19 |
| December 2030 | 2,957.07 | 2,274.67 |
Financial Condition of SBI Cards and Payment Services: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (in Cr. INR) |
7,017 | 9,281 | 9,301 | 10,679 | 13,667 |
| Interest (in Cr. INR) |
1,009 | 1,301 | 1,043 | 1,027 | 1,648 |
| Expenses + (in Cr. INR) |
4,887 | 6,618 | 7,223 | 7,953 | 9,444 |
| Financing Profit (in Cr. INR) |
1,121 | 1,362 | 1,034 | 1,699 | 2,575 |
| Financing Margin % | 16% | 15% | 11% | 16% | 19% |
| Other Income + (in Cr. INR) |
270 | 471 | 413 | 622 | 619 |
| Depreciation (in Cr. INR) |
55 | 104 | 123 | 149 | 164 |
| Profit before tax (in Cr. INR) |
1,335 | 1,730 | 1,324 | 2,172 | 3,031 |
| Tax % | 35% | 28% | 26% | 26% | 25% |
| Net Profit + (in Cr. INR) |
865 | 1,245 | 985 | 1,616 | 2,258 |
| EPS in Rs | 10.33 | 13.26 | 10.47 | 17.14 | 23.87 |
| Dividend Payout % | 10% | 8% | 0% | 15% | 10% |
Looking at the financial statements of SBI Cards and Payment Services for the past five years, it is evident that the company has shown impressive growth in terms of revenue and profitability. The revenue has steadily increased from ₹7,017 crore in March 2019 to ₹13,667 crore in March 2023, exhibiting a revenue growth of approximately 94%. The company’s net profit has also grown significantly, from ₹865 crore in March 2019 to ₹2,258 crore in March 2023, showcasing a profit growth of around 161%.
The maximum and minimum revenue for the last five years were ₹13,667 crore and ₹7,017 crore, respectively. Similarly, the net profit also had a maximum and minimum of ₹2,258 crore and ₹865 crore, respectively. The company’s operating profit margin (OPM) has shown improvement, with an OPM of 19% in March 2023 as compared to 16% in March 2019. Overall, SBICard’s financial statements highlight its consistent growth in revenue and profitability, indicating a positive outlook for the company’s future.
FAQS
The share prices of SBI Cards have been fluctuating over the past few years due to various factors such as market conditions, competition, and economic factors.
Based on various factors such as income growth, PAT, revenue growth, and profit growth, the expected share price target for SBI Cards in 2024-2030 is estimated to reach around 1,087.32 INR by 2025.
The factors that could impact the share price of SBI Cards in the future include changes in market conditions, competition, economic factors, government policies, and industry trends.
What is the dividend payout ratio of SBI Cards?
The dividend payout ratio of SBI Cards has been around 7-10% over the past few years, indicating that the company pays out a portion of its profits to shareholders.
How has the revenue growth of SBI Cards been over the past few years?
The revenue growth of SBI Cards has been consistently increasing over the past few years, indicating that the company is expanding its customer base and increasing its market share.
What is the OPM (Operating Profit Margin) of SBI Cards?
The OPM of SBI Cards and Payment Services has been around 15-19% over the past five years, indicating that the company can generate profits from its operations.
How does SBI Cards compare to its competitors in the credit card industry?
SBI Cards is one of India’s leading credit card issuers and has a strong market presence. It competes with other major players such as HDFC Bank, Axis Bank, and ICICI Bank.
What is the market capitalization of SBI Cards?
As of April 6th, 2024, the market capitalization of SBI Cards is around 69,454 Crore INR.
Is SBI Cards a good investment option for long-term investors?
SBI Cards has shown consistent growth over the past few years and has a strong market position in the credit card industry. However, as with any investment, investors need to do their research and consider their risk tolerance before investing in the company.
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RBI’s New Policy Impact on SBI Card
Nomura India and Motilal Oswal Securities predict a significant impact on Tier 1 capital ratios for NBFCs due to increased risk weights, with SBI Card expected to face the most substantial hit of up to 450 basis points. Nuvama Institutional Equities highlights that while all lead lenders will be affected, SBI Cards, Axis Bank, state-owned banks, ABFRL, RBL, and Kotak are particularly vulnerable due to lower capital or growth loss, whereas IIB, LICHF, and City Union are the least affected due to minimal exposures.
Conclusion
In conclusion, SBI Cards and Payment Services has consistently increased its revenue and net profit over the past five years, demonstrating a stable expansion in its income and profitability. The company’s operating profit margin has ranged from 11% in 2021 to 19% in 2023, indicating a positive trend in its operational efficiency.
According to our analysis, the share price target for SBI Cards and Payment Services for the years 2024 to 2030 ranges from ₹685.57to ₹2,957.07. These figures provide potential price ranges for investors considering long-term investments.
Given the company’s growth trajectory and prospects, SBI Cards and Payment Services shares appear to be a promising investment for investors with a long-term vision. However, investors need to conduct their research and analysis before making any investment decisions.
What did we learn?
- 1 SBI Cards and Payment Services Q3 FY24 Results Summary
- 2 How to purchase SBI Cards and Payment Services shares?
- 3 SBI Cards and Payment Services Share Price Prediction: 2024 to 2030
- 3.1 SBI Cards Share Price Target 2024
- 3.2 SBI Cards Share Price Target 2025
- 3.3 SBI Cards and Payment Services Share Price Target 2026
- 3.4 SBI Cards and Payment Services Share Price Target 2027
- 3.5 SBI Cards and Payment Services Share Price Target 2028
- 3.6 SBI Cards and Payment Services Share Price Target 2029
- 3.7 SBI Cards and Payment Services Share Price Target 2030
- 4 Financial Condition of SBI Cards and Payment Services: Last 5 years
- 5 FAQS
- 5.1 What has been the trend in SBI Cards’ share prices over the past few years?
- 5.2 What is the expected share price target for SBI Cards in 2024-2030?
- 5.3 What are the factors that could impact the share price of SBI Cards in the future?
- 5.4 What is the dividend payout ratio of SBI Cards?
- 5.5 How has the revenue growth of SBI Cards been over the past few years?
- 5.6 What is the OPM (Operating Profit Margin) of SBI Cards?
- 5.7 How does SBI Cards compare to its competitors in the credit card industry?
- 5.8 What is the market capitalization of SBI Cards?
- 5.9 Is SBI Cards a good investment option for long-term investors?
- 6 RBI’s New Policy Impact on SBI Card
- 7 Conclusion
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