SBI Cards and Payment Services Limited

Financial Services — Credit Services · NSE

₹564.20−₹9.00 (−1.57%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of SBI Cards and Payment Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SBI Cards and Payment Services Limited, a non-banking financial company, provides credit cards to individual and corporate customers in India. The company offers corporate, central travel, utility, and corporate purchase and virtual cards.

IndustryCredit Services

SectorFinancial Services

Employees4,218

Annual revenue₹15,627 Cr

How does it make money?

Turns over ₹15,627 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit. Each of its 4,218 employees supports ₹3.70 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

22 analysts covering the stock expect revenue to grow about 12.4% and earnings to grow about 18.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.4%

Est. earnings growth+18.7%

Analysts22

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +46% while net margin moved -34% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+46%

Margin effect-34%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 13.5% is steady
✗ Profit has declined at 1.4% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.6x

3Y Median

31.4x

40 monthly readings · mean 32.5x · range 24.8x–43.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 31.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 39% above the peer median of 17.0x.

vs. its own history

Cheap

31.4x median over 40 months · -25%

vs. sector peers

Expensive

17.0x median of 4 peers · +39%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.21

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 23.0% to 13.8% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 39% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 23.0% to 13.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.5% CAGR
Latest reported year was 23.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 12%✓ 13.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 31.4x✓ 23.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹53,692 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

23.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹23.9

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

2.80x

High

High leverage

Revenue Growth (YoY)

23.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

19.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.44%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹459 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

26.7%

Good

Healthy core-business profitability

Net Margin

18.2%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

587.0 / 623.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10,678 Cr	₹12,751 Cr	₹14,268 Cr	₹15,627 Cr	+13.5%
PAT (Net Profit)	₹2,258 Cr	₹2,408 Cr	₹1,916 Cr	₹2,167 Cr	-1.4%
EPS	₹23.8	₹25.37	₹20.14	₹22.77	-1.5%
ROE	23.0%	19.9%	13.9%	13.8%	—
Total Debt	₹31,531 Cr	₹40,315 Cr	₹45,171 Cr	₹44,230 Cr	+11.9%
Free Cash Flow	-₹6,764 Cr	-₹5,728 Cr	-₹2,196 Cr	₹459 Cr	—

🟢 Revenue has grown at 13.5% a year over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.4% a year).

🟡 EPS has been broadly flat over 3 years (-1.5% a year).

🔴 ROE has fallen from 23.0% to 13.8% over 3 years (-9.2 pts).

🔴 Total Debt has grown at 11.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6,764 Cr to ₹459 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹66,328 Cr

Total Liabilities

₹50,602 Cr

Cash & Equivalents

₹2,133 Cr

Operating Cash Flow

₹493 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

25.2%

Insider Holding

68.6%

Corporate Actions

Next Earnings

22 Oct 2026

Dividend Rate

₹2.5

Ex-Dividend Date

11 Mar 2026

Analyst Consensus

Recommendations

11 Buy · 6 Hold · 7 Sell

Target Price (Mean)

₹685.17

+21.4% vs CMP

Target Range

₹430 – ₹900

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

SBI Cards and Payment Services (NSEI:SBICARD) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

SBI Cards launches co-branded Google Pay Flex SBI Card

scanx.trade, 18 Oct

SBI Cards Share Price Fall: Price, Valuation, Peer View

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Cochin Shipyard - DIIs increase stake in 8 midcap stocks in Q2FY27

The Economic Times, 18 Oct

SBI Cards Reports Q1 Standalone Net Profit of ₹664 Crore vs ₹560 Crore YoY

Sahi, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SBI Card faces INR 50,000 ruling: what it means for SBI Card stock

ad-hoc-news.de, 14 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation · Risk

MiddlingProfitability

WeakGrowth

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 3 tripwires holding · see Key things to watch ↑