Morgan Stanley has reiterated its ‘Equal-weight’ rating on SBI Cards with a target price of ₹650, suggesting a potential downside of 5.9% from the Current Market Price (CMP) of ₹690.95.
The brokerage notes a decline in SBI Cards’ November spending market share, which fell to 14.9% from 15.8% in October 2024. Moreover, the company saw a 20% YoY drop in spending during November, significantly underperforming the industry, which grew by 5% YoY. This decline reflects the ongoing impact of the Reserve Bank of India’s notification on corporate card spending that came into effect in February 2024.
However, the company’s market share in the number of credit cards in force stood at 18.7% as of November 2024. On a positive note, aggregate daily spending has shown an 8% YoY growth so far in December, improving from 4% in November, indicating a possible recovery.
Disclaimer: The information in this article is based on Morgan Stanley’s analysis and is for informational purposes only. It does not constitute financial advice or recommendations to buy or sell stocks. Investors should conduct their own research or consult a professional advisor before making investment decisions.