Check Before You Invest : SBI Cards And Payment Services Ltd

Q: Which industry/sub-sector does SBI Cards And Payment Services Ltd belong to?

SBI Cards And Payment Services Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is SBI Cards And Payment Services Ltd a good quality company?

SBI Cards And Payment Services Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is SBI Cards And Payment Services Ltd undervalued or overvalued?

SBI Cards And Payment Services Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 27.24, Historic Median: 36.87. Price to Book, Current: 3.75, Historic Median: 6.94. Price to Sales, Current: 3.09, Historic Median: 5.45. EV to EBITDA, Current: 15.41, Historic Median: 20.62

Q: Is SBI Cards And Payment Services Ltd a good buy now?

SBI Cards And Payment Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Operating Income growth is 6.51% for FY-2025, which is below its 5-year CAGR of 14.27%, indicating slower growth.

Q: Return on Assets of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Return on Asset is 3.1%, which is below its 5-year historical median of 4.7%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 10.6, Historic Median: 14.19. PPOP (%), Current: 14.33, Historic Median: 14.33. RoA (%), Current: 3.1, Historic Median: 4.7

Q: Return on Equity (ROE) of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Return on Equity is 14.8% for FY-2025, which is below its 5-year historical median of 22%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 14.33% for FY-2025, which is in line with its 5-year median(14.33%), indicating stable margins.

Q: Net Profit Margin of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 10.6% for FY-2025, which is below its 5-year median( 14.19%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

SBI Cards And Payment Services Ltd return on invested capital (ROIC) is 8.45% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

Check Before You Invest : SBI Cards And Payment Services Ltd

BSE: 543066 NSE: SBICARD ISIN: INE018E01016

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does SBI Cards And Payment Services Ltd belong to?

SBI Cards And Payment Services Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is SBI Cards And Payment Services Ltd a good quality company?

SBI Cards And Payment Services Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is SBI Cards And Payment Services Ltd undervalued or overvalued?

SBI Cards And Payment Services Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	27.24	36.87
Price to Book	3.75	6.94
Price to Sales	3.09	5.45
EV to EBITDA	15.41	20.62

Q.4 Is SBI Cards And Payment Services Ltd a good buy now?

SBI Cards And Payment Services Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Operating Income growth is 6.51% for FY-2025, which is below its 5-year CAGR of 14.27%, indicating slower growth.

Q.2 Return on Assets of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Return on Asset is 3.1%, which is below its 5-year historical median of 4.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	10.6	14.19
PPOP (%)	14.33	14.33
RoA (%)	3.1	4.7

Q.3 Return on Equity (ROE) of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Return on Equity is 14.8% for FY-2025, which is below its 5-year historical median of 22%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 14.33% for FY-2025, which is in line with its 5-year median(14.33%), indicating stable margins.

Q.5 Net Profit Margin of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 10.6% for FY-2025, which is below its 5-year median( 14.19%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

SBI Cards And Payment Services Ltd return on invested capital (ROIC) is 8.45% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Total Asset growth is 12.6% for FY-2025, which is below its 5-year CAGR of 21.07%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Capital Adequacy ratio (CAR) is 22.9% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.9 Asset Quality of SBI Cards And Payment Services Ltd?

SBI Cards And Payment Services Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 3.08% for FY-2025, which is above its 5-year median 2.76%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 1.46% which is above its 5-year median( 0.99%), indicating deteriorating asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of SBI Cards And Payment Services Ltd?

Q.1 Promoter shareholding and pledge status of SBI Cards And Payment Services Ltd?

Promoters hold 68.92% of the SBI Cards And Payment Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SBI Cards And Payment Services Ltd performance compare with that of its Peers?

Q.1 AUM Growth of SBI Cards And Payment Services Ltd vs Industry Peers?

SBI Cards And Payment Services Ltd AUM CAGR is 21.07%, compared to the 5-year industry median CAGR of 15.99%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of SBI Cards And Payment Services Ltd vs industry peers

SBI Cards And Payment Services Ltd profit metrics are in line with the industry median level of 10.14%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	10.6	15.4
PPOP (%)	14.33	12.76
RoA (%)	3.1	2.25

Q.3 Operating efficiency of SBI Cards And Payment Services Ltd vs industry peers?

SBI Cards And Payment Services Ltd ROCE (13.4) is above the industry median of (9.05); while the current ROE (22) are above than the 5-year average Industry ROE (12.85). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	10.6	15.4
PPOP (%)	14.33	12.76
RoA (%)	3.1	2.25
ROCE (%)	11.8	9.05
ROE (%)	14.8	12.85

Valuation & price assessment

Q.1 Stock return of SBI Cards And Payment Services Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -10.04% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-10%	-10.9%	-29.2%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	27.24	36.87	29.12
Price to Book	3.75	6.94	1.11
Price to Sales	3.09	5.45	9.10
EV to EBITDA	15.41	20.62	11.77

Q.3 Valuation ratios of SBI Cards And Payment Services Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 3.75 is lower than its historical median of 6.94, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : SBI Cards And Payment Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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