Yesterday, March 17, a day after suffering a blow of over 4 per cent, SBI card has seen an increase of up to 3 per cent on the BSE in intraday today or on March 18.
Shares of India’s second largest credit card company SBI Card came under heavy pressure yesterday after the sale of a 4 per cent stake by private equity firm Carlyle.
According to the copy of this deal available with Moneycontrol, Carlyle has sold this stake of SBI Card for $ 51.3 million. However, brokerage firms believe that the sale of shares by Carlyle will not have any negative impact on the SBI card. Brokerage houses have maintained their view positive on the SBI card.
On March 17, brokerage firm Motilal Oswal raised its rating on SBI Card to BUY and raised the target price to Rs 1,200. Motilal Oswal has said in an earlier report that the company’s fundamentals are very strong and that in future it will be among the most important companies to benefit from the growing credit card business in the country.
The company has steadily strengthened its position in the Indian market and has become the second largest credit card player in the country. The company accounts for about 20 per cent of the credit card business in overall spandering, while the company has a market share of about 19 per cent in outgoing cards.
The number of card holders of the company is around 11.5 million. In the last 3 years, the company’s card base has increased almost double.
Brokerage house Prabhudas Leeladhar has also given a positive opinion on the stock despite Carlyle’s share sale.
Please tell that 1 week ago, Global brokerage house Morgan Stanley started coverage of SBI card. Morgan Stanley has given a target of Rs 1300 for the SBI card.
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