⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SBICARD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | SBICARD | Market Cap | 70,268 Cr. | Current Price | 737 ₹ | High / Low | 1,027 ₹ |
| Stock P/E | 33.6 | Book Value | 155 ₹ | Dividend Yield | 0.34 % | ROCE | 10.4 % |
| ROE | 14.8 % | Face Value | 10.0 ₹ | DMA 50 | 839 ₹ | DMA 200 | 854 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.08 % | PAT Qtr | 557 Cr. | PAT Prev Qtr | 445 Cr. |
| RSI | 23.7 | MACD | -29.9 | Volume | 8,14,828 | Avg Vol 1Wk | 25,60,011 |
| Low price | 726 ₹ | High price | 1,027 ₹ | PEG Ratio | 5.76 | Debt to equity | 3.33 |
| 52w Index | 3.90 % | Qtr Profit Var | 45.2 % | EPS | 22.0 ₹ | Industry PE | 18.9 |
📊 Core Financials
- Revenue growth reflected in strong quarterly PAT increase (557 Cr vs 445 Cr, +25%).
- ROE at 14.8% indicates decent shareholder returns, though ROCE at 10.4% is modest.
- Debt-to-equity ratio of 3.33 is high, showing reliance on leverage.
- Cash flows supported by consistent profitability, but debt servicing remains a concern.
💹 Valuation Indicators
- P/E ratio: 33.6 (significantly above industry average of 18.9, suggesting overvaluation).
- P/B ratio: ~4.75 (737 ₹ / 155 ₹ book value), indicating premium pricing.
- PEG ratio: 5.76, very high, showing weak growth-adjusted valuation.
- Intrinsic value appears lower than current price, suggesting limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates as a pure-play credit card issuer under SBI brand, leveraging strong parent backing.
- Competitive advantage lies in brand trust, wide distribution, and customer base.
- High growth potential in India’s underpenetrated credit card market.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 720–740 ₹ range (near current low and RSI oversold at 23.7).
- Long-term holding viable if debt levels reduce and valuation moderates.
- Investors should accumulate gradually, avoiding heavy exposure at current valuations.
Positive
- Strong quarterly profit growth (+45.2%).
- Backed by SBI brand and trust.
- Expanding credit card market in India.
Limitation
- High debt-to-equity ratio (3.33).
- Valuation stretched compared to industry peers.
- Low dividend yield (0.34%).
Company Negative News
- Stock trading below 50 DMA (839 ₹) and 200 DMA (854 ₹), showing bearish trend.
- Weak technical indicators (RSI oversold, MACD negative).
Company Positive News
- Quarterly PAT growth demonstrates strong operational performance.
- FII and DII holdings increased slightly, showing institutional confidence.
Industry
- Industry PE at 18.9, much lower than SBICARD’s 33.6, highlighting sector undervaluation.
- Credit card penetration in India remains low, offering long-term growth opportunities.
Conclusion
- SBICARD is fundamentally strong but overvalued at current levels.
- Best suited for long-term investors who can tolerate volatility and wait for debt reduction.
- Accumulation recommended near 720–740 ₹ with cautious exposure.
Would you like me to also prepare a technical chart-based entry strategy for SBICARD to complement this fundamental view?