Why the Price Drop?
The stock slid to ₹726.6 recently, down 3.4% in a day and 4.65% over three days. Blame flat quarterly results, high debt worries, and NBFC sector blues—down 2.82% too. It's under all moving averages, screaming bearish vibes. Even with Q3 profit up 45% YoY to ₹557 crore, annual profits dipped, spooking folks.
Market cap sits at ₹70,165 crore now, with price around ₹737. P/E is 33.6, higher than peers like Bajaj Finance at 30.7 or Shriram at 20.5—industry median around 19. NBFC average? About 30-100, but SBI Cards looks pricey here.
Key Numbers Check:
Cash flow? Operating was negative lately, like -₹2,140 crore last year—common for lenders growing loans fast. Debt's huge, borrowings at ₹44,947 crore end FY25. Debt-to-equity? Around 3.3x, or 332%—high, but NBFCs borrow to lend.
Dividend yield's a measly 0.34%, payout low at 12%. ROE is solid 14.8%, ROCE 10.4%. Profit growth? Q3 YoY +45%, but FY25 net profit fell to ₹1,916 crore from prior, TTM growth just 2% compounded. Mixed bag, huh? Like a friend who earns well but spends too much.
Born 1998 as JV between State Bank of India (big daddy) and GE Capital. HQ in Gurgaon. SBI bought out GE in 2017 with Carlyle help. Listed 2020 as first pure credit card play. Grew cards-in-force to 2.18 crore now.
How They Make Money?
Business? Issue credit cards, earn from interest on unpaid balances (big chunk), fees, merchant discounts. Products: SimplyCLICK for shoppers, AURUM for rich folks, co-branded with IRCTC or BPCL. Retail spends up 8% YoY to ₹92k crore, corporate 14%. Digital push for millennials. 18% market share. They lend your spending power, pocket the cut. Smart, if defaults stay low.
Numbers show strength—ROE decent, Q3 profit jump—but debt scares me, P/E stretched, stock down 11% yearly. At ₹725, trading 4.7x book value (₹155). If economy booms, cards fly. But recessions? Defaults spike. I'd watch asset quality, next results. Not rushing in yet.
Price guesses? Analysts vary. 2026: maybe ₹1,400 high end. 2030: ₹3,400-4,300. Longer? Wild—2035 could double that if growth holds, 2040 ₹10k+? Pure speculation, like betting on rain in Delhi monsoon. Do your homework, friend.
