SBI Cards Q2 Results Review - Asset Quality Pain Continues; Margins Contract Further: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.SBI Cards and Payment Services Ltd. reported another weak quarter, characterized by an earnings miss and high asset quality stress alongside a further contraction in margins. Opex too stood elevated amid the festive season related adjustment; however, the higher credit cost continues to dent earnings. Spending growth was modest while corporate spends witnessed a mild uptick in Q2, expecting the momentum to continue in Q3 and Q4. The mix of revolvers declined slightly while the management focused on expanding the EMI mix. The margin witnessed a hit due to the festive season; however, the cost of funds is expected to provide some relief as the rate cuts begin. Credit cost further inched up to 9.0% with the management guiding an elevated credit cost for FY25. The reversal in the rate cycle and improvement in the revolver mix are the key triggers, though they appear to be a few quarters away. We further cut our FY25E/FY26E earnings per share by 22.1%/19.1%, factoring in an elevated credit cost and subdued margins. Reiterate Neutral with a target price of Rs 750 (22 times Sep-26E EPS)..Click on the attachment to read the full report:.Adani Ports Q2 Results Review - Inline Performance; Outlook Remains Bright; Reiterate 'Buy': Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Cards Q2 Results Review - Asset Quality Pain Continues; Margins Contract Further: Motilal Oswal

The brokerage reiterates Neutral rating on the stock with a target price of Rs 750 (22 times Sep’26E earnings per share).

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SBI Cards Q2 Results Review - Asset Quality Pain Continues; Margins Contract Further: Motilal Oswal

The brokerage reiterates Neutral rating on the stock with a target price of Rs 750 (22 times Sep’26E earnings per share).

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