SBI Cards And Payment Services Ltd - Stock Valuation and Financial Performance

BSE: 543066 | NSE: SBICARD | Finance - NBFC | Mid Cap

SBI Cards AndPayment Share Price

835.10 -14.45 -1.70%
as on 21-Feb'25 16:59

DeciZen - make an informed investing decision on SBI Cards AndPayment

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

SBI Cards And Payment Services stock performance -

P/E Ratio (SA):
38.86
Market Cap:
79,447.6 Cr.
52-wk low:
649
52-wk high:
871.9

Is SBI Cards And Payment Services Ltd an attractive stock to invest in?

1. Is SBI Cards And Payment Services Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that SBI Cards And Payment Services Ltd is a good quality company.

2. Is SBI Cards And Payment Services Ltd undervalued or overvalued?

The key valuation ratios of SBI Cards And Payment Services Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.

3. Is SBI Cards And Payment Services Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of SBI Cards And Payment Services Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of SBI Cards AndPayment:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
SBI Cards And Payment Services Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Operating Income (₹ Cr.)1,8202,3873,3465,1876,9999,2769,29610,67713,66716,96816,983
YoY Gr. Rt. %-31.2%40.2%55%34.9%32.5%0.2%14.9%28%24.2%-
Adj EPS (₹ ) 3.43.64.87.710.313.310.517.123.925.321.5
YoY Gr. Rt. %-6.5%31.2%61.3%34.9%28.4%-21%63.7%39.3%6.1%-
BVPS (₹ )12.314.718.528.841.756.766.581.7103.5126.9141.6
YoY Gr. Rt. %-19.6%25.5%55.8%45.1%35.9%17.4%22.8%26.7%22.7%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)4.84.14.14.64.95.53.85.35.74.70

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income28.2%19.4%22.2%24.2%
Adj EPS25%19.6%34.2%6.1%
BVPS29.6%24.9%24%22.7%
Share Price - - 1.6% 13%

Key Financial Ratios

RATIOS \ YEARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)1.41.50.810.80.70000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0015.718.320.122.40000-
Margins
Net Profit Margin (%)14.711.911.111.612.413.410.615.116.514.212
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)31.226.828.632.430.128.21723.225.82215.2

Recent Performance Summary

Total Income has increased 22.21 CAGR in last 3 years

Net Profit has increased 34.23 CAGR in last 3 years

Return on Equity has declined versus last 3 years average to 16.00%

Total income growth is poor in last 4 quarters

Latest Financials - SBI Cards And Payment Services Ltd.

Standalone Consolidated
TTM EPS (₹) 21.5 -
TTM Sales (₹ Cr.) 16,983 -
BVPS (₹.) 141.6 -
Reserves (₹ Cr.) 12,522 -
P/BV 5.90 -
PE 38.86 -
From the Market
52 Week Low / High (₹) 649.00 / 871.90
All Time Low / High (₹) 495.25 / 1164.65
Market Cap (₹ Cr.) 79,448
Equity (₹ Cr.) 951.4
Face Value (₹) 10
Industry PE 27.6

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Operating Income4,139 19.74,171 12.74,248 9.64,425 1.1
Adj EPS (₹)6.97 10.66.25 0.24.25 -33.34.03 -30.3
Net Profit Mgn %15.23 -62 bps13.64 -153 bps9.15 -560 bps8.30 -358 bps

Management X-Ray of SBI Cards AndPayment:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:68.6%Institutions:25.99%Non-Institutions:5.41%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%10%20%30%40%50%60%70%80%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of SBI Cards AndPayment

MRP
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MOS
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DP
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Base BVPS
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DPS
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MRP: ₹ 0
DP: ₹0
Base BVPS ₹:
DPS ₹:
MOS (%):
Save my Valuation
Expected BVPS Growth Rate:
0%
Base 0%
30%
Expected Rate of Return:
0%
Base 0%
30%
Future PBV:
0
Base 0
40
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

Initiating Coverage: SBI Cards & Payment Services Ltd - 18 May 2023

SBI Cards and Payment Services Limited is a subsidiary of the State Bank of India (SBI), which is India's largest public sector bank. The company is primarily engaged in the business of issuing credit cards and providing related services to customers. SBI Card was launched in 1998 as a joint venture between SBI and GE Capital. It is the second largest and only listed credit card issuer company in India

Industry

Indian credit card industryis estimated by FY 2027, the total value of credit card transactions will reach INR 51.72 trillion, growing at a CAGR of 39.22% between FY 2022 and FY 2027.

Despite a drastic increase in credit card consumers, the rate of credit card penetration in India remains low. In India, only 3 out of every 100 people have credit cards, which are well below the World Bank's benchmark, which is set at 30%. There were about 73 million credit cards issued in FY22 expected to grow at CAGR of 24.8% to reach 337 million credit cards by 2030 in India.

Business Segments

Interest Income

On EMI- SBI Card earns interest on the credit card accounts, which have opted for EMI payment model. This segment generates yield 12-18% p.a.

On Revolvers- Revolvers are cardholder who carry a balance on their credit card from month to month and pays interest on the outstanding balance. These cards revolve debt and are charged interest on outstanding balance. This segment generates yield of 42% p.a.

Merchant Discount Rates (MDR)

SBI cards charges a merchant discount rate on transactions made using its credit cards. The MDR is a fee charged to merchants for accepting credit card payments. This segment yield 1.4-1.6% on value of these transactions.

Non-Interest Income

SBI cards revenue from card issuance charges, Annual fees, late payment fees, cash withdrawal fees, over-limit fees, foreign currency transaction fees.

Business Performance

 

FY23

FY22

Change YoY

Advances  (In Cr)

40,722

30,553

15.5%

Non-Interest Income

4,505

3,838

17.4%

Net Interest Margin (NIM)

11.3%

12.6%

-1.3%

Credit Cost

5.4%

7.4%

-2.0%

PAT

2,258

1,616

39.7%

Borrowings

22,982

31,110

35.4%

Risks

SBI Cards operate in very competitive industry, with various banks, neo-banks and Fintechs fighting to gain credit usage of card holders.

Buy now pay later (BNPL) can shift credit usage from credit card issuers towards fintechs & BNPL providers.

Reduction in MDR rates can reduce non-interest income component of revenue from SBI cards, thereby reducing discounts and offers for attracting customers.

SBI Cards: Quarterly Result update - 11 May 2020

Results: SBI Cards & Payment Services Ltd reported year on year jump of ~50% in Net Interest Income* and 21% in Total Income. Total AUM^ grew year on year by 28%.

  • Asset quality improved during the quarter. Gross NPA was 2.01% (vs 2.44% in Q3FY19) and Net NPA was 0.66% (vs 0.88% in Q3FY19).
  • Covid-19 impacted spends per day from Rs. 376 Cr (Jan'20 to Mid Mar'20) to Rs. 256 Cr (in 2nd Half of Mar'20). Spends per card reduced to 1.26 lakh in Q4FY20 vs 1.42 lakh in Q4FY19.
  • Pre-COVID Co. used to add 10,000 accounts per day and the peak was 30,000 accounts. Due to Covid-19, it has dropped significantly to 4000 accounts.
  • Customer profile comprised of 85% salaried and 15% self-employed. The retail proportion has increased. Retail spends have grown 39% year on year.

Outlook: SBI Cards has started its operations in green zone. The company created provisions to the tune of Rs. 489 Cr on account of COVID related uncertainties. Only 10% of the customers opted for moratorium as of Mar’20. This includes both auto enrolled and customers who have applied for it. 25% of these customers have paid in April. The Company is receiving repayments worth Rs.316 Cr per day.

Till now SBI Cards has seen healthy growth in its AUM due to under penetrated card market of India and increasing spends on credit. SBI cards has managed to deliver growth in recent quarter given its strong franchise value and its strong distribution channel partner SBI. The company enjoys an advantageous relationship with SBI (promoter), India’s largest bank with a huge franchisee network and customer base, offering enormous cross-selling opportunities. However, we believe that the stock was listed at expensive valuation which factored the future growth. The current price does not seem to factor the risk of business that can be created by other payment options like UPI. We recommended the stock for listing gains but asked to sell if gains are not materialized. Currently we maintain avoid on the stock.

* Net Interest Income- Total interest earned by a company on loan minus Total interest that it expended on its borrowings.

^AUM- Assets under management

Key Ratios of SBI Cards AndPayment

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
Aditya Birla Capital 157.3 -0.8 (-0.5%) Mid Cap 34,506 14.2 10 11.1 1.4
SBI Cards AndPayment 835.1 -14.5 (-1.7%) Mid Cap 16,968 21.5 14.2 39.5 6
Mah & Mah Finl. Serv 270.4 -10.3 (-3.7%) Mid Cap 15,797 20 12.3 14 1.7
L&T Finance 135.8 -1.8 (-1.3%) Mid Cap 13,581 10.3 17.1 13.4 1.4
Muthoot Finance 2,212 -64.2 (-2.8%) Mid Cap 12,635 118.3 32.1 19.2 3.4
Sundaram Finance 4,649.3 -77.6 (-1.6%) Mid Cap 7,267 143.5 19.6 32.9 4.1
Indian Ren. Energy 177.2 3.4 (2%) Mid Cap 4,964 5.7 25.2 30.4 4.8
Poonawalla Fincorp 290.1 -0.1 (-0%) Mid Cap 3,114 2.2 66 132 2.8
Tata Invest Corp 5,947 -134.9 (-2.2%) Mid Cap 288 55.9 83.7 108.9 0.8

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Income1,9052,4933,4715,3707,2879,7529,71411,85814,28617,484
Interest Income1,8202,3873,3465,1876,9999,2769,29610,67713,66716,968
Other Income 861061251832884764171,181619515
Expenditure 1,6352,0552,8994,4515,9528,0238,3909,68611,25514,252
Interest Expense 3785331,1271,3611,3081,6891,4001,5032,2843,313
Operating Expenses 1,0201,2471,1972,2523,4474,3294,2195,2756,6997,519
Provisions 2372745758381,1962,0052,7712,9072,2723,420
Exceptional Items 0000000000
Profit Before Tax 2714385729191,3351,7301,3242,1723,0313,232
Taxes 4154199318470485339556772824
Profit After Tax 2672843736018651,2459851,6162,2582,408
Adjusted EPS (₹)3.43.64.87.710.313.310.517.123.925.3
Dividend Payout Ratio (%)15%28%21%0%10%8%0%15%10%10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Equity Capital9661,1551,4492,3533,4935,3416,2997,7539,83012,084
Share Capital 785785785785837939941943946951
Reserves 1813706641,5682,6554,4025,3596,8108,88411,133
Minority Interest0000000000
Long Term Borrowings1732964361,6943,2434,5964,7547,4287,9097,738
Current Liabilities 5,0196,3398,75111,55113,15215,09515,56119,24927,56037,995
Trade Payables91861195306657298931,1281,4061,529
Short term borrowings4,4585,5877,7059,64110,31712,84012,87615,49523,14331,993
Other Liabilities-4,549-5,673-7,824-10,171-10,887-13,569-13,765-16,623-24,549-33,522
Total Liabilities 6,1587,79010,63615,59819,98325,03226,61834,43045,29957,817

Assets

Non Current Asset 538594564302913847259342,1773,091
Loan Asset 0000000000
Other Non Current Asset 538594564302913847259342,1773,091
Current Asset 5,6207,19610,58015,16819,69224,64825,89333,49643,12254,726
Current Investment0000006238785681,015
Other Current Asset5,6207,19610,58015,16819,69224,64825,27032,61842,55553,711
Total Assets 6,1587,79010,63615,59819,98325,03226,61834,43045,29957,817

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -879-1,158-2,235-2,877-2,327-4,063692-4,391-6,671-5,452
Cash Flow From Investing Activity 11-1-31-76-77-997-538-921-1,457
Cash Flow From Financing Activity 1,0081,1412,2442,9352,8243,9234325,0457,8248,401
Net Cash Flow 130-17926422-2181271152321,492
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Operational & Financial Ratios

EPS (₹)3458101310172425
DPS (₹)1110110333
BVPS (₹)1215182942576782103127

Performance Ratios

ROA (%)4.84.14.14.64.95.53.85.35.74.7
ROE (%)31.226.828.632.430.128.217.023.225.822.0
ROCE (%)13.115.220.219.417.117.111.613.414.814.1

Valuation Parameters

Price/Book(x)0.00.00.00.00.010.914.010.47.25.4

SBI Cards And Payment Services Ltd Stock News

SBI Cards And Payment Services Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SBI Cards AndPayment on 21-Feb-2025 16:59 is ₹835.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Feb-2025 16:59 the market cap of SBI Cards AndPayment stood at ₹79,447.6.
The latest P/E ratio of SBI Cards AndPayment as of 21-Feb-2025 16:59 is 38.86.
The latest P/B ratio of SBI Cards AndPayment as of 21-Feb-2025 16:59 is 5.90.
The 52-week high of SBI Cards AndPayment is ₹871.9 and the 52-week low is ₹649.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SBI Cards AndPayment is ₹16,983 ( Cr.) .

About SBI Cards And Payment Services Ltd

SBI Card was launched in October 1998 by the State Bank of India and GE Capital. Incorporated as SBI Cards and Payment Services Private Limited (SBICPSL), SBI Card is headquartered in Gurgaon, Haryana.

In December 2017, State Bank of India and The Carlyle Group acquired GE Capital’s stake in SBI Card, post which SBI held 74% while Carlyle held 26% in the Company. The legal name of SBI Card was changed on August 20, 2019, from SBI Cards and Payment Services Private Limited to SBI Cards and Payment Services Limited, on account of its conversion from a ‘Private Limited’ company to a ‘Public Limited’ company. In March 2020, SBI Card became the first pure play credit card company to list on the stock exchanges in India. The company is the second largest credit card provider in the country, with huge card base. It also has offices in many cities in India.

Business area of the company

The company is engaged in the business of issuing credit cards to consumers in India. It offers Indian consumers access to a wide range of world-class, value-added payment products and services.

Products

The company’s product portfolio includes premium, classic, travel and shopping, exclusive and corporate cards, to cater to both individual and corporate needs.

Awards

  • 2013: Awarded VISA Recognition, ‘Best Issuing Institution’ for excellence in Fraud Risk Management, 2013.
  • 2014: Awarded ‘AISA Outsourcing Excellence Award: Excellence in Customer Service’ as part of CMO Asia Awards 2014.
  • 2015: Awarded ‘Gartner Global Eye on Innovation Award 2015.’
  • 2016: Awarded VISA Recognition ‘Champion Security Award’ South East Asia for Excellence in Fraud Risk Management- 2016.
  • 2017: Awarded ‘Best Data Quality Awards-Consumer Bureau Category- NBFC’, 2017 by Transunion CIBIL.
  • 2018: Awarded ‘Best Loyalty Program in Financial Sector: Non-Banking - 2018’ under Customer Loyalty Awards.
  • 2018: Awarded ‘Corporate Excellence Gold Award for Compliance Innovation’ as a part of SKOCH Summit 2018.
  • 2018: Awarded ‘Learning Innovator Award’ as part of GP Strategies Awards, 2018.
  • 2019: Awarded ‘Best Loyalty Program in Financial Sector: Non-Banking - 2019’ under Customer Loyalty Awards.
  • 2019: Awarded ‘Gold Winner: Customer Service Department of the Year; as part of Golden Bridge Awards, 2019.
  • 2019: Awarded ‘Best Data Quality- Consumer Bureau amongst NBFCs 2019’ as part of Data Quality Awards 2019.
  • 2020: Awarded in the category of ‘Analytics/Big Data’ as part of the DELL Technologies BFSI Technology Conclave, 2020.

Milestones

  • 1998: SBI Card enters the credit card space
  • 1999: SBI Card reaches the 1 lakh mark
  • 2002: SBI Card enters the ‘1 Million Cards’ club
  • 2002: SBI Card enters into its first partnership with a public sector bank
  • 2003: SBI Card launches Affinity Cards in 8 cities
  • 2005: SBI Card crosses 2 million card base
  • 2006: SBI Card launches co-branded cards with Indian Railways
  • 2006: SBI Card launches co-branded cards with SpiceJet and Tata
  • 2006: SBI Card becomes the second largest credit card issuer
  • 2010: SBI Card launches the SBI Platinum Card
  • 2011: SBI Card launches chip based EMV cards
  • 2012: SBI Card launches SBI Signature Card for HNIs
  • 2013: SBI Card launches Air India co-branded cards
  • 2014: SBI Card launches Fbb SBI ‘STYLEUP’ Card’
  • 2014: SBI Card enters the ‘3 Million Cards’ Club
  • 2015: SBI Card launches the SimplySAVE SBI Card
  • 2015: SBI Card launches SimplyCLICK
  • 2016: SBI Card launches SBI Card ELITE
  • 2016: SBI Card enters the ‘4 Million Cards’ Club
  • 2017: SBI Card launches Central SELECT SBI Cards
  • 2017: SBI Card launches SBI Card PRIME and SBI Card Unnati
  • 2017: SBI Card enters 5 million cards club
  • 2017: SBI Card launches BPCL SBI Card
  • 2018: SBI Card enters 6 million cards club
  • 2018: SBI Card launches Doctor's SBI Card
  • 2018: SBI Card launches virtual assistant ‘ELA’
  • 2018: Apollo SBI Card launched
  • 2018: SBI Card crosses 7 million customer base
  • 2019: Etihad Guest SBI Card launched
  • 2019: Ola Money SBI Card Launched
  • 2019: SBI Card enters 9 million cards club
  • 2019: SBI Card enters into a network partnership with Rupay network
  • 2019: SBI Card launches Club Vistara SBI Card PRIME and Club Vistara SBI Card
  • 2019: SBI Card enters 10 million cards club
  • 2020: SBI Card launches Lifestyle HC SBI Card, Max SBI Card and Spar SBI Card with Landmark Group
  • 2020: SBI Card becomes first pure play credit card issuer to list on BSE and NSE
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