SBI Cards and Payment Services Ltd., incorporated in the year 1998, is a Small Cap company (having a market cap of Rs 92011.61 Crore) operating in Financial Services sector.
Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 2539.77 Crore, up 1.08 % from last quarter Total Income of Rs 2512.73 Crore and down -.91 % from last year same quarter Total Income of Rs 2563.21 Crore. Company reported net profit after tax of Rs 209.66 Crore in latest quarter.
Investment Rationale
The stock has corrected ~11% since our initiation and is trading at 35x FY23E earnings, which is attractive given its strong fundamentals, earnings growth, and long-term structural story. At the CMP, the stock offers ~23% upside to unchanged TP of INR1,200 (43x FY23E EPS).
Promoter/FII Holdings
Promoters held 69.5 per cent stake in the company as of Sept 30, 2020, while FIIs held 5.9 per cent, DIIs 3.2 per cent and public and others 21.4 per cent.
