Business News Desk – Credit card company SBI Cards and Payment Services’ stock may jump 14 per cent to Rs 913 in the coming days. This expectation has been expressed by analysts at global brokerage firm Goldman Sachs. The brokerage has upgraded the stock’s rating from ‘sell’ to ‘buy’ and raised the target price from Rs 652 to Rs 913 per share. This is 14 per cent higher than the stock’s closing price on BSE on September 6.
Due to this upgrade, the stock of SBI Cards and Payment Services saw a rise of about 6 per cent intraday on September 6 and the stock reached an 11-month high. The stock opened strong at Rs 777 on the BSE in the morning. After this, it rose by about 6 per cent and touched a high of Rs 811.85. At the close of trading, the stock closed more than 4 per cent stronger at Rs 800.40. The stock’s 52-week high is Rs 857.90 and the upper price band is Rs 844.25 on the BSE. The company’s market cap is Rs 76100 crore. As of the end of June 2024, the promoters held 68.62 percent stake in the company.
Financial position of SBI Cards & Payment Services
SBI Cards and Payment Services’ net profit remained stable at Rs 594 crore year-on-year in the April-June 2024 quarter. A year ago, the company’s profit was recorded at Rs 593 crore. The company’s total income increased year-on-year to Rs 4,483 crore in the June 2024 quarter from Rs 4,046 crore in the June 2023 quarter. The company’s gross NPA increased to 3.06 percent of gross advances. It was 2.41 percent a year ago. Similarly, net NPA increased to 1.11 percent from 0.89 percent in the June 2023 quarter.
SBI stock rating downgraded
In another development, Goldman Sachs has downgraded the stock of State Bank of India (SBI). The brokerage has reduced the rating from ‘Neutral’ to ‘Sell’. Also, the target price has been reduced from Rs 841 to Rs 742 per share.