SBI Cards share price: Shares of SBI Cards and Payment Services Limited are trading in the green today even in the falling market. The company’s shares saw a rise of more than 5 percent today on January 6. At present this stock is trading at Rs 730.15 with an increase of one percent on BSE. Actually, two major brokerage firms Nomura and Nuwama have upgraded this stock. After this news, the shares of the company have seen a rise today. With today’s rise, the market cap of the company has increased to Rs 69543 crore.
What did Nomura say?
Both the brokerage firms have raised their target prices for the stock citing improvement in asset quality and the possibility of interest rate cuts. Nomura has given ‘Buy’ rating to SBI Cards with a revised target price of Rs 825 per share, which means the stock has an upside potential of about 14 per cent. The brokerage believes that concerns over asset quality are likely to subside in the near future.
The share of credit card loans coming from metro cities is continuously increasing, while the credit limit offered to credit card users in non-metro areas and their borrowing capacity is decreasing. Meanwhile, SBI Cards has recorded a huge increase in new customer additions from the top eight metro cities of India.
Nuvama also increased the target
Nuvama also upgraded SBI Cards to ‘Buy’ and raised its target price to Rs 850 per share. The brokerage believes credit costs peaked in Q2FY25 and are expected to improve sequentially. The brokerage believes that possible rate cuts by the Reserve Bank of India (RBI) in the coming quarters are also expected to further improve the performance of SBI Cards.
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