ndia’s demographics and low penetration and use of credit cards are long term positive for SBI Cards, but pandemic has resulted in higher NPAs, which are transient

Strong industry leading growth from non DXC (erstwhile owner) clients and mining of new accounts from Blackstone affiliates its present owner should lead to good performance over time
August 2, 2021
Syngene is a company to watch as expansion projects get commissioned and encouraging environment for drug discovery services in a post Covid world
August 2, 2021

SBI Cards, subsidiary of SBI is India’s only standalone listed credit card company. There are two revenue streams – interest on credit card outstandings and fees and commission on transactions. Adoption of credit cards and increased spending on cards is the key growth driver for the company. Based on fair valuations, excellent growth prospects, exceptional track record and pedigree of its promoter -SBI, we have a positive view on the company. Despite rising NPAs due to Covid-19 pandemic, we have an over weight rating due to a good business model, pedigree of the promoter which provides support and ready customer base for increasing subscribers – 27-07-2021 Price: 1017.35 Rating: Over Weight Recommendation : Buy

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