Analysts have cut earnings estimates, and target price for SBI Card and Payment Services (SBI Card) post its weaker-than-expected September quarter show. Following the action, the stock tanked 7 per cent to Rs 800 on the BSE in Friday’s intra-day trade, as against a 0.3 per cent gain in the benchmark S&P BSE Sensex.
That said, while analysts expect the stock’s underperformance to continue in the near-term, they remain fairly bullish on the company’s long-term prospects.
“Following a weak July-September quarter (Q2FY23), we expect the stock to underperform in the short-term. Even so, we maintain ‘BUY’ as we view SBI Cards as a concept stock—being the only listed player in the highly profitable credit card segment. An uptick in the