SBI Cards and Payment Services Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹66,443 crore, PE ratio of 27.6, debt-to-equity ratio of 3.30, and return on equity of 22.0%. These figures reflect the company’s financial health and current market valuation.
Content:
- SBI Cards and Payment Services Ltd Overview
- SBI Cards and Payment Services Financial Results
- SBI Cards and Payment Services Financial Analysis
- SBI Cards and Payment Services Company Metrics
- SBI Cards and Payment Services Stock Performance
- SBI Cards and Payment Services Peer Comparison
- SBI Cards and Payment Services Shareholding Pattern
- SBI Cards and Payment Services History
- How To Invest In SBI Cards and Payment Services Ltd Share?
- SBI Cards and Payment Services Fundamental Analysis – FAQs
SBI Cards and Payment Services Ltd Overview
SBI Cards and Payment Services Ltd is a leading credit card issuer in India, renowned for its extensive range of credit card offerings. It benefits from the backing of the State Bank of India, leveraging its strong market presence and financial stability.
The company has a market capitalization of ₹66,443 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 18.6% below its 52-week high and 7.82% above its 52-week low.
SBI Cards and Payment Services Financial Results
SBI Cards and Payment Services Ltd financial results for FY24 highlight substantial growth, with Total Income reaching ₹17,484 crore, up from ₹11,302 crore in FY22. Net Profit also improved to ₹4,050 crore.
- Revenue Trend: SBI Cards and Payment Services Ltd’s total Income rose by 22.4% to ₹17,484 crore in FY24 from ₹14,286 crore in FY23, reflecting strong revenue growth.
- Equity and Liabilities: SBI Cards and Payment Services Ltd’s total Expenses increased to ₹9,322 crore in FY24, up from ₹7,725 crore in FY23, indicating rising operational costs.
- Profitability: Pre-Provisioning Operating Profit (PPOP) grew to ₹8,161 crore in FY24, from ₹6,561 crore in FY23, maintaining a solid PPOP margin of 46.68%.
- Earnings Per Share (EPS): EPS increased to ₹25.39 in FY24, up from ₹23.92 in FY23, reflecting stronger earnings per share.
- Return on Net Worth (RoNW): SBI Cards and Payment Services Ltd’s Net Profit rose to ₹4,050 crore in FY24, showing strong returns despite a slight decrease in the Tax % to 16.9% from 17.54% in FY23.
- Financial Position: The financial position of SBI Cards and Payment Services Ltd strengthened, with Profit Before Tax reaching ₹4,874 crore in FY24, up from ₹4,402 crore in FY23, while maintaining a stable PPOP margin.
SBI Cards and Payment Services Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 17,484 | 14,286 | 11,302 |
| Total Expenses | 9,322 | 7,725 | 5,849 |
| Pre-Provisioning Operating Profit | 8,161 | 6,561 | 5,452 |
| PPOP Margin (%) | 46.68 | 45.93 | 48.25 |
| Provisions and Contingencies | 3,287 | 2,159 | 2,256 |
| Profit Before Tax | 4,874 | 4,402 | 3,197 |
| Tax % | 16.9 | 17.54 | 17.39 |
| Net Profit | 4,050 | 3,630 | 2,641 |
| EPS | 25.39 | 23.92 | 17.16 |
| Dividend Payout % | 9.85 | 10.45 | 14.57 |
*All values in ₹ Crores
SBI Cards and Payment Services Company Metrics
SBI Cards and Payment Services Ltd has a market capitalization of ₹66,443 crore, reflecting its significant market presence. With a current price of ₹699, the company demonstrates stable financial health despite recent fluctuations in stock performance and profitability metrics.
Market Cap: At ₹66,443 crore, SBI Cards and Payment Services Ltd holds a substantial market value, indicating its strong position in the financial sector.
Book Value: The book value of ₹127 per share represents the company’s net asset value, highlighting its underlying worth.
Face Value: The face value of ₹10 per share is the nominal value, providing a base reference for the company’s stock valuation.
Turnover: Asset turnover of 0.33 shows efficient use of assets to generate revenue, though it reflects modest operational efficiency.
PE Ratio: With a P/E ratio of 27.6, the stock is valued at a premium, reflecting market expectations of future earnings growth.
Debt: The company carries a significant debt of ₹39,891 crore, resulting in a high debt-to-equity ratio of 3.30.
ROE: A return on equity of 22.0% indicates strong profitability and efficient use of shareholders’ equity.
EBITDA Margin: The EBITDA margin stands at 32.8%, showcasing effective cost management and strong operating profitability.
Dividend Yield: With a dividend yield of 0.36%, the company offers modest returns to shareholders, reflecting its cautious dividend policy.
SBI Cards and Payment Services Stock Performance
The table shows varied returns on investment (ROI) across different periods. Over 5 years, the ROI is 22.7%, indicating strong long-term performance. However, the 3-year ROI is -12% and the 1-year ROI is -18%, highlighting recent underperformance and a decline in investment value.
| Period | Return on Investment (%) |
| 5 Years | 22.7% |
| 3 Years | -12% |
| 1 Year | -18% |
Example:
If A invested ₹1,00,000 five years ago, the 22.7% ROI would result in a return of ₹22,700, making the total value ₹1,22,700.
In contrast, if A invested the same amount three years ago, with a -12% ROI, the investment would be worth ₹88,000.
For a one-year investment with an -18% ROI, the value would be ₹82,000.
SBI Cards and Payment Services Peer Comparison
SBI Cards & Payments Services, with a market cap of ₹65,506.1 Crores, faces challenges with negative returns over 3 months and 1 year. It lags behind peers like Shriram Finance and HDFC AMC in performance.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Bajaj Finance | 6458.5 | 399568.64 | 0.91 | -4.28 | -7.97 |
| 2 | Bajaj Finserv | 1529.15 | 243995.49 | 1.43 | -4.19 | 3.18 |
| 3 | Jio Financial | 320.2 | 203400.7 | -9.82 | ||
| 4 | Cholaman.Inv.&Fn | 1344 | 112919.82 | 1.32 | 6.5 | 29.5 |
| 5 | Shriram Finance | 2895.1 | 108783.15 | 0.62 | 23.79 | 59.64 |
| 6 | Bajaj Holdings | 9390.6 | 104403 | 0.74 | 12.65 | 28.64 |
| 7 | HDFC AMC | 4144.1 | 88452.56 | 2.69 | 7.5 | 66.12 |
| SBI Cards | 689.65 | 65506.1 | 1.2 | -3.38 | -19.31 |
SBI Cards and Payment Services Shareholding Pattern
Shareholding Pattern of SBI Cards and Payment Services Ltd reveals stable promoter control at around 68.6%. Foreign Institutional Investors (FIIs) have slightly increased their stake to 8.72%. Domestic Institutional Investors (DIIs) hold a steady 16.5%, while Retail & others have grown marginally to 6.11%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 68.62 | 68.63 | 68.75 | 68.94 |
| FII | 8.72 | 8.59 | 9.35 | 9.08 |
| DII | 16.54 | 16.68 | 16.27 | 17.28 |
| Retail & others | 6.11 | 6.09 | 5.62 | 4.69 |
*All values in %
SBI Cards and Payment Services History
SBI Cards, launched in 1998 by the State Bank of India and GE Capital, was originally named SBI Cards and Payment Services Private Limited. It is headquartered in Gurgaon, Haryana, and quickly grew its customer base to 1 lakh within 10 months.
In December 2017, the State Bank of India and The Carlyle Group acquired GE Capital’s stake. The company rebranded as SBI Cards and Payments Services Limited in August 2019, and in March 2020, it became the first pure-play credit card company to list on Indian stock exchanges.
Over 25 years, SBI Cards expanded its offerings and card base significantly, achieving over 18.5 million cards in force. The company has received numerous accolades for its customer service, product innovation, and marketing excellence.
How To Invest In SBI Cards and Payment Services Ltd Share?
Investing in SBI Cards and Payment Services Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for SBI Cards and Payment Services Ltd shares and place your buy order.
SBI Cards and Payment Services Fundamental Analysis – FAQs
SBI Cards and Payment Services Ltd’s fundamental analysis reveals a market capitalization of ₹66,443 crores, a P/E ratio of 27.6, a debt-to-equity ratio of 3.30, and a return on equity of 22.0%, indicating its financial stability and market position.
The market capitalization of SBI Cards and Payment Services Ltd is ₹66,443 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
SBI Cards and Payment Services Limited is a leading Indian credit card issuer, established in 1998. A joint venture between the State Bank of India and The Carlyle Group, it offers a range of payment solutions and has over 18.5 million cards in force.
SBI Cards and Payment Services is primarily owned by the State Bank of India and The Carlyle Group. State Bank of India holds a majority stake, while The Carlyle Group, an international investment firm, also has a significant share in the company.
The main shareholders of SBI Cards and Payment Services are the State Bank of India, which holds the largest stake, and The Carlyle Group, a prominent global investment firm. These stakeholders significantly influence the company’s strategic decisions and operations.
SBI Cards and Payment Services operates in the financial services industry, specifically focusing on the credit card sector. It provides a range of credit and payment solutions, including personal, corporate, and co-branded credit cards, within the broader financial services market.
To invest in SBI Cards and Payment Services Ltd shares, open a demat and trading account with a registered stockbroker or financial institution. Then, place a buy order for the shares through the broker’s trading platform or app.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
