SBI Cards Adjusts Outlook Amid Declining Profits and Strong Institutional Support

SBI Cards & Payment Services, a prominent player in the Non-Banking Financial Company (NBFC) sector, has recently undergone an adjustment in evaluation. This revision reflects a shift in the technical outlook, moving from a bullish stance to a mildly bullish perspective.
In terms of key financial metrics, the company has reported a flat financial performance for the quarter ending March 2025, with a profit after tax (PAT) of Rs 917.41 crore, indicating a decline of 24.27% over the last six months. The return on equity (ROE) stands at 14.6%, suggesting a relatively high valuation with a price-to-book ratio of 6.5, which is above the average historical valuations of its peers.

SBI Cards has demonstrated a market-beating performance, achieving a return of 22.25% over the past year, significantly outpacing the broader market's returns. However, it is noteworthy that the company's profits have decreased by 20.4% during the same period. Additionally, institutional holdings remain robust at 27.1%, with a slight increase of 1.11% from the previous quarter, indicating confidence from larger investors.

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