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 10-year financial track record.

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 below with their past averages.

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

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 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.

Q.7 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.8 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

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)

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 above the industry median level of 9.53%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	10.6	13.77
PPOP%	14.33	12.76
RoA%	3.1	2.05

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	13.77
PPOP%	14.33	12.76
RoA%	3.1	2.05
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 -8.13% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-8.1%	-6.3%	-26.7%

Q.3 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	28.26	37.24	28.96
Price to Book	3.89	7.17	1.11
Price to Sales	3.21	5.53	9.10
EV to EBITDA	15.77	20.65	11.77

Q.4 Valuation ratios of SBI Cards And Payment Services Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.89% is lower than its historical median of 7.17%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 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.

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