SBI Card slides by over 5% after firm reports weak Q3 numbers; brokerages cut target

SBI Card Share Price: SBI Card dipped by more than five per cent on BSE on Monday (January 29, 2024) after the firm reported weak third-quarter results. 

The stock of the company closed down by 5.82 per cent, or Rs 44.25, at Rs 715.60 on Monday.

SBI Card Q3 results

SBI Card reported weak third-quarter results as its net interest income increased by 21.2 per cent to Rs 1387 crore in the December quarter from Rs 1144.60 crore in the same quarter last fiscal.

Zee Business research had estimated NII to be Rs 1350 crore. 

Profit after tax (PAT) of the company also rose by 7.75 per cent to Rs 549 crore compared to Rs 509.5 crore YoY against the estimate of Rs 595 crore. 

Its provisions also saw a jump of 32.4 per cent to Rs 1686 crore against Rs 1273 crore YoY, while it was up by 10.8 per cent compared to Rs 1521 crore QoQ.

Gross non-performing assets (GNPA) jumped by 2.64 per cent compared to 2.43 per cent QoQ. The research estimate was 2.4 per cent for the same.

Here's what brokerages say about SBI Card

Jefferies has double downgraded the SBI company to hold from buy. It has cut the target price to Rs 830 from Rs 950.

Morgan Stanley has downgraded to equalweight from overweight with the target cut to Rs 750 from Rs 1200.

JP Morgan has downgraded the stock to underweight from neutral. The target has been cut to Rs 675 from Rs 900.

CLSA has maintained an underperform rating on the stock with the target being cut to Rs 790 from Rs 900.

Macquarie has maintained a neutral stance on the stock with a target of Rs 760.

Nomura has maintained a reduce rating on the stock. The target for the stock is Rs 650.

Goldman Sachs has maintained a sell, with the target cut to Rs 627 from Rs 649.

HSBC maintained a hold on the stock with the target cut to Rs 760 from Rs 840.