SBICARD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | SBICARD | Market Cap | 61,274 Cr. | Current Price | 644 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 28.3 | Book Value | 165 ₹ | Dividend Yield | 0.39 % | ROCE | 10.1 % |
| ROE | 14.7 % | Face Value | 10.0 ₹ | DMA 50 | 702 ₹ | DMA 200 | 788 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.28 % | PAT Qtr | 609 Cr. | PAT Prev Qtr | 557 Cr. |
| RSI | 37.3 | MACD | -11.4 | Volume | 20,71,416 | Avg Vol 1Wk | 31,01,642 |
| Low price | 615 ₹ | High price | 1,027 ₹ | PEG Ratio | -20.6 | Debt to equity | 2.80 |
| 52w Index | 6.97 % | Qtr Profit Var | 14.1 % | EPS | 22.8 ₹ | Industry PE | 18.2 |
📊 SBICARD shows moderate fundamentals with steady profitability but faces valuation and leverage concerns. The current price of ₹644 is near its support zone (₹615–640), making this range a potential entry for long-term investors. Upside potential is capped unless ROCE improves and debt levels reduce.
💡 For holders, a medium-term horizon (3–5 years) is reasonable if ROE remains above 14% and PAT growth sustains. Exit strategy: partial profit booking near ₹780–800 (200 DMA resistance) or full exit if ROCE declines further or debt-to-equity worsens.
Positive
- 📈 PAT growth of 14.1% QoQ highlights improving profitability.
- 💰 ROE at 14.7% indicates strong shareholder return potential.
- 🔎 EPS of ₹22.8 supports earnings visibility.
Limitation
- ⚠️ Debt-to-equity ratio of 2.80 is high, raising financial risk.
- 📉 ROCE at 10.1% is below ideal compounding levels.
- 📊 PEG ratio (-20.6) suggests overvaluation relative to growth.
Company Negative News
- 📉 FII holding declined (-0.60%), showing reduced foreign investor confidence.
- 📊 Technical weakness: RSI at 37.3 (oversold zone), MACD negative.
Company Positive News
- 📈 PAT rose from ₹557 Cr. to ₹609 Cr., showing consistent growth.
- 📊 DII holding increased (+0.28%), reflecting domestic institutional support.
Industry
- 🏦 Industry PE at 18.2 is lower than SBICARD’s 28.3, indicating relative overvaluation.
- 📉 Credit card sector is cyclical, tied to consumer spending and interest rate trends.
Conclusion
⚖️ SBICARD remains a strong player in the credit card space but trades at a premium compared to peers. Ideal entry is near ₹615–640. Long-term investors may hold if ROE sustains and debt is managed, but cautious monitoring is essential. Exit near ₹780–800 or on deterioration of ROCE/debt metrics.
This HTML report integrates SBICARD’s fundamentals, valuation, and sector context with clear entry/exit guidance. Would you like me to expand this by benchmarking SBICARD against peers such as HDFC Bank, ICICI Bank, or Axis Bank to highlight relative strengths and long-term growth potential?