Scrip Watch

SBI Cards and Payments Services

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

SBI Cards and Payments Services

 

Market Cap: Rs 73,520 crs 

 

52 Week High/ Low: Rs 789/ 495

 

CMP: Rs 780

 

IPO Performance: 

 

During the quarter ended March 31, 2020, the Company had come up with an Initial Public Offering (IPO) of 137,149,314 Equity Shares of face value Rs 10 each comprising of a Fresh Issue of 6,622,516 Equity Shares and an Offer for Sale of 130,526,798 Equity Shares aggregating to Rs.1,034,0.8 crs.

 

SBI Cards did not perform very well at its IPO  and listed 13% below its offer price. 

 

List Date IPO Listing % Variance BSE 09/07/2020 % Variance
Price in Rs Price in Rs List Price over Price in Rs Current Price over
16-Mar-20 755 658 -13 780 3.3

 

Financials: 

 

SBI Cards showed a 14% rise in their Q1 profits this year due to higher interest income. There was also a 20% rise in their cards in force showing that they have acquired new customers even during the pandemic with the rate close to pre-pandemic numbers. 

Given the rise in cards and an increase in profits, it shows that the new cards distributed by them are being used. 

 

21/07/2020 SBI Cards
Year FV CMP Equity Net Worth Long Term Debt Total Income PAT BV EPS P/E P/BV Promoter’s Holdings
Rs Rs Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Rs %
Q1 2021 10 780 938 5734 2195 393 61 16.8 47 13 69.53
FY 2020 10 780 938 5341 16117 9752 1244 57 13.3 59 14 69.55
FY 2019 10 780 837 3587 12352 7287 864 43 10.3 76 18

 

For Q1 2021:

  1. P/E is annualised
  2. Networth is calculated 

 

Additional Data:

 

In accordance with the RBI Circulars dated March 27, 2020 and April 17, 2020 with regard to providing relief to borrowers on account of COVI D-19 pandemic, SBI Card has offered a moratorium on credit card dues to eligible borrowers in accordance with a Board approved policy. In this backdrop, The Company, based on current estimates, has created an additional management overlay on Expected Credit Loss (ECL) amounting to Rs 489.25 crs during the quarter and year ended March 31, 2020. 

 

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