SBI Cards - Top-Of-The-Crest Play: HDFC Securities Initiates Coverage
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
SBI Cards and Payment Services Ltd., India’s second largest credit card issuer, has established itself as an enviable franchise, delivering on all fronts (~40% earnings per share compound annual growth rate from FY18 to FY20, ~5-6% return on asset, prudent risk management, etc.).
With a balanced customer acquisition strategy across open market and banca (Stata Bank of India), SBI Cards has diversified its revenue streams (fee income at ~50% of total income) to drive earnings, which is poised for a 45% earnings per share CAGR over FY21-FY24E.
A highly profitable segment globally, credit cards are severely underpenetrated in India and hence, primed for a long growth runway.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.