Shares of SBI Cards and Payment Services are trading in the red on Tuesday, April 28, after brokerages flagged muted growth trends and cut their target prices following the company's Q4 results. According to reports from CNBC TV18, HSBC maintained a 'reduce' rating and cut its target price to ₹500, implying a downside of nearly 25% from the current trading price of ₹665.55 as of 10:33 am. The brokerage cited slower growth and pressure across key operating parameters in the fourth quarter of FY26 as the reason for the downgrade.
As reported by CNBC TV18, Jefferies retained a 'hold' rating with a target price of ₹700, noting that adjusted profit after tax (PAT) for the March quarter fell 2% year-on-year to ₹5.2 billion, below its estimate of ₹6 billion. The brokerage attributed the miss to weaker growth in net interest income (NII) and fee income. UBS also maintained a 'neutral' stance and reduced its target price to ₹780, highlighting subdued growth despite sequential improvement in asset quality. The brokerage noted that while credit costs declined, overall performance missed expectations.
According to CNBC TV18, spending grew 31% year-on-year in the quarter, but receivables rose only around 2%. UBS noted that management expects loan growth to lag spending growth even in FY27. Bloomberg Analyst consensus data shows 12 out of 28 analysts tracking SBI Cards have given the stock a 'Sell' rating, while nine say 'Buy' and seven have given a 'Hold' rating. The stock has gained nearly 5% in the last month, but has declined 26.5% over the six months.
As reported by CNBC TV18, HSBC trimmed its earnings estimates by 1% and 9.4% for FY27 and FY28 respectively, factoring in weaker growth and revenue assumptions. Jefferies cut its FY27–28 earnings estimates by 4–6%, adding that portfolio de-risking could cap asset growth and weigh on returns. HSBC values SBI Cards at 2.3 times its FY28 estimated book value per share. The brokerage flagged disappointment in receivables growth and a decline in the revolver mix as key concerns.
