With the new RBI policy, credit card companies like SBI cards are on the back foot. The stock dropped by more than 5% on November 17th, 2023. At the time of updating this article, SBI Cards is trading at Rs. 732.85 INR per share. For a very long time now, SBI Card’s share price has been declining, down from its ATH of Rs. 1140 (October 2021). Will SBI
Financially, with significant revenue and profit growth over the past three years, SBI Cards and Payment Services has been doing well. What about the future, though? We’ll examine SBI Cards’ share price goal for the years 2023 to 2030 in this post and attempt to respond to the question on everyone’s mind: Is SBI Cards and Payment Services a wise investment? So, take a seat back, unwind, and let’s investigate the options.
Below are the trading platforms that you can use to purchase SBI Cards and Payment Services shares:
- ➤ Zerodha
- ➤ Upstox
- ➤ Groww
- ➤ AngelOne
- ➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹785.12 | ₹693.75 |
| December 2023 | ₹791.98 | ₹638.16 |
2023 was mostly bearish for the credit card giant. As of November 17, 2023, SBI Card is down 7.7% year to date. The current PE ratio is 30.2, and the book value is ₹ 117.
SBI Card’s maximum and minimum share price target for November 2023 is ₹785.12 and ₹693.75 respectively, and for December is ₹791.98 and ₹638.16.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹780.50 | ₹643.91 |
| February 2024 | ₹924.89 | ₹717.30 |
| March 2024 | ₹965.55 | ₹726.56 |
| April 2024 | ₹968.68 | ₹842.33 |
| May 2024 | ₹807.23 | ₹701.94 |
| June 2024 | ₹968.68 | ₹842.33 |
| July 2024 | ₹823.38 | ₹715.98 |
| August 2024 | ₹905.71 | ₹787.58 |
| September 2024 | ₹951.00 | ₹826.96 |
| October 2024 | ₹1,118.82 | ₹972.89 |
| November 2024 | ₹1,174.77 | ₹1,021.54 |
| December 2024 | ₹1,198.26 | ₹1,041.97 |
SBI Card share price target for 2024 suggests SBICard could be trading between ₹643.91 and ₹1,198.26. I am expecting SBI Card to trade the highest in the month of December 2024, and the lowest in the month of January 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹1,222.23 | ₹940.17 |
| February 2025 | ₹1,286.55 | ₹989.66 |
| March 2025 | ₹1,350.88 | ₹1,039.14 |
| April 2025 | ₹1,206.14 | ₹927.80 |
| May 2025 | ₹1,096.49 | ₹843.46 |
| June 2025 | ₹1,206.14 | ₹927.80 |
| July 2025 | ₹1,148.71 | ₹883.62 |
| August 2025 | ₹1,196.57 | ₹920.44 |
| September 2025 | ₹1,256.40 | ₹966.46 |
| October 2025 | ₹1,331.78 | ₹1,024.45 |
| November 2025 | ₹1,425.01 | ₹1,096.16 |
| December 2025 | ₹1,453.51 | ₹1,118.08 |
In this section, we have analyzed SBI Cards and Payment Services share price predictions for 2025.
The prices range from ₹843.46 in May 2025 to ₹1,453.51 in December 2025. The maximum and minimum prices for the year are ₹1,453.51 and ₹843.46, respectively.
The average target price for SBI Cards during 2025 is expected to be around ₹1,260. The upside potential for the stock during 2025 is positive, with an overall bullish trend for most of the year.
The growth percentage varies from month to month, with a minimum of -23.77% in May 2025 and a maximum of 32.11% in November 2025.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,526.18 | ₹1,068.33 |
| 2027 | ₹1,678.80 | ₹1,175.16 |
| 2028 | ₹2,350.32 | ₹1,175.16 |
| 2029 | ₹2,034.91 | ₹1,017.46 |
| 2030 | ₹2,441.90 | ₹1,709.33 |
According to our analysis, SBI Cards and Payment Service’s share price is expected to reach a maximum of ₹2,350.32 and a minimum of ₹1,068.33 in 2026. The target price for the year 2027 is expected to be between ₹1,678.80 and ₹1,175.16. In 2028, the maximum and minimum share price targets are expected to be ₹2,350.32 and ₹1,175.16, respectively.
Furthermore, the target share price for 2029 is expected to range between ₹2,034.91 and ₹1,017.46, with the maximum and minimum target prices being ₹2,034.91 and ₹1,017.46, respectively. In 2030, the maximum target price is expected to be ₹2,441.90, while the minimum target price is expected to be ₹1,709.33.
Financial Condition of SBI Cards and Payment Services: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Revenue (in Cr. INR) |
7,017 | 9,281 | 9,301 | 10,679 | 13,667 |
| Interest (in Cr. INR) |
1,009 | 1,301 | 1,043 | 1,027 | 1,648 |
| Expenses + (in Cr. INR) |
4,887 | 6,618 | 7,223 | 7,953 | 9,444 |
| Financing Profit (in Cr. INR) |
1,121 | 1,362 | 1,034 | 1,699 | 2,575 |
| Financing Margin % | 16% | 15% | 11% | 16% | 19% |
| Other Income + (in Cr. INR) |
270 | 471 | 413 | 622 | 619 |
| Depreciation (in Cr. INR) |
55 | 104 | 123 | 149 | 164 |
| Profit before tax (in Cr. INR) |
1,335 | 1,730 | 1,324 | 2,172 | 3,031 |
| Tax % | 35% | 28% | 26% | 26% | 25% |
| Net Profit + (in Cr. INR) |
865 | 1,245 | 985 | 1,616 | 2,258 |
| EPS in Rs | 10.33 | 13.26 | 10.47 | 17.14 | 23.87 |
| Dividend Payout % | 10% | 8% | 0% | 15% | 10% |
Looking at the financial statements of SBI Cards and Payment Services for the past five years, it is evident that the company has shown impressive growth in terms of revenue and profitability. The revenue has steadily increased from ₹7,017 crore in March 2019 to ₹13,667 crore in March 2023, exhibiting a revenue growth of approximately 94%. The company’s net profit has also grown significantly, from ₹865 crore in March 2019 to ₹2,258 crore in March 2023, showcasing a profit growth of around 161%.
The maximum and minimum revenue for the last five years were ₹13,667 crore and ₹7,017 crore, respectively. Similarly, the net profit also had a maximum and minimum of ₹2,258 crore and ₹865 crore, respectively. The company’s operating profit margin (OPM) has shown improvement, with an OPM of 19% in March 2023 as compared to 16% in March 2019. Overall, SBICard’s financial statements highlight its consistent growth in revenue and profitability, indicating a positive outlook for the company’s future.
HDFC Securities on SBI Cards and Payment Services Share price target
HDFC Securities has recommended a buy call on SBI Cards and Payment Services, suggesting that investors can continue purchasing shares of the company with a target price of Rs 960.
Motilal Oswal on SBI Cards and Payment Services share price target
Motilal Oswal has issued a buy call on SBI Cards and Payment Services, advising investors to consider purchasing shares of the company with a target price of Rs 830.
FAQS
The share prices of SBI Cards have been fluctuating over the past few years due to various factors such as market conditions, competition, and economic factors.
Based on various factors such as income growth, PAT, revenue growth, and profit growth, the expected share price target for SBI Cards in 2023-2030 is estimated to reach around 1500 INR by 2025.
The factors that could impact the share price of SBI Cards in the future include changes in market conditions, competition, economic factors, government policies, and industry trends.
What is the dividend payout ratio of SBI Cards?
The dividend payout ratio of SBI Cards has been around 7-10% over the past few years, indicating that the company pays out a portion of its profits to shareholders.
How has the revenue growth of SBI Cards been over the past few years?
The revenue growth of SBI Cards has been consistently increasing over the past few years, indicating that the company is expanding its customer base and increasing its market share.
What is the OPM (Operating Profit Margin) of SBI Cards?
The OPM of SBI Cards and Payment Services has been around 15-19% over the past five years, indicating that the company is able to generate profits from its operations.
How does SBI Cards compare to its competitors in the credit card industry?
SBI Cards is one of the leading credit card issuers in India and has a strong market presence. It competes with other major players such as HDFC Bank, Axis Bank, and ICICI Bank.
What is the market capitalization of SBI Cards?
As of November 17, 2023, the market capitalization of SBI Cards is around 69,413 Crore INR.
Is SBI Cards a good investment option for long-term investors?
SBI Cards has shown consistent growth over the past few years and has a strong market position in the credit card industry. However, as with any investment, it is important for investors to do their own research and consider their own risk tolerance before investing in the company.
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RBI’s New Policy Impact on SBI Card
Nomura India and Motilal Oswal Securities predict a significant impact on Tier 1 capital ratios for NBFCs due to increased risk weights, with SBI Card expected to face the most substantial hit of up to 450 basis points. Nuvama Institutional Equities highlights that while all lead lenders will be affected, SBI Cards, Axis Bank, state-owned banks, ABFRL, RBL, and Kotak are particularly vulnerable due to lower capital or growth loss, whereas IIB, LICHF, and City Union are the least affected due to minimal exposures.
Conclusion
In conclusion, SBI Cards and Payment Services has consistently increased its revenue and net profit over the past five years, demonstrating a stable expansion in its income and profitability. The company’s operating profit margin has ranged from 11% in 2021 to 19% in 2023, indicating a positive trend in its operational efficiency.
According to our analysis, the share price target for SBI Cards and Payment Services for the years 2023 to 2030 ranges from ₹921.98 to ₹2,441.90. These figures provide potential price ranges for investors considering long-term investments.
Given the company’s growth trajectory and future prospects, SBI Cards and Payment Services shares appear to be a promising investment for investors with a long-term vision. However, it is important for investors to conduct their own research and analysis before making any investment decisions.
What did we learn?
- 1 How to purchase SBI Cards and Payment Services shares?
- 2 SBI Cards and Payment Services Share Price Prediction: 2023 to 2030
- 3 Financial Condition of SBI Cards and Payment Services: Last 5 years
- 4 SBI Cards and Payment Services Share Price Target by Experts
- 5 FAQS
- 5.1 What has been the trend in SBI Cards’ share prices over the past few years?
- 5.2 What is the expected share price target for SBI Cards in 2023-2030?
- 5.3 What are the factors that could impact the share price of SBI Cards in the future?
- 5.4 What is the dividend payout ratio of SBI Cards?
- 5.5 How has the revenue growth of SBI Cards been over the past few years?
- 5.6 What is the OPM (Operating Profit Margin) of SBI Cards?
- 5.7 How does SBI Cards compare to its competitors in the credit card industry?
- 5.8 What is the market capitalization of SBI Cards?
- 5.9 Is SBI Cards a good investment option for long-term investors?
- 6 RBI’s New Policy Impact on SBI Card
- 7 Conclusion
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