SBI Cards and Payment Services fell 2.12% to Rs 908.50 after a foreign brokerage reportedly initiated coverage on the scrip with a 'Sell' rating and a price target of Rs 654.
The target price of Rs 654 implies a downside of 28.01% to the ruling market price.According to the media reports, the brokerage is among the first institutional brokers to initiate a 'Sell' call on the stock and believes rich valuations of the company have made risk-reward ratio unfavorable.
While the brokerage acknowledged that SBI Cards has managed the COVID-19 situation well, there are several headwinds for the credit card company going ahead, reports added.
On a consolidated basis, SBI Cards and Payment Services' net profit surged 67.31% to Rs 344.90 crore on 7.39% increase in total income to Rs 2,695.46 crore in Q2 FY22 over Q2 FY21.
SBI Card is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients.
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