SBI Cards and Payment Services Ltd

SBI Cards and Payment Services Ltd maintains a highly leveraged capital structure typical of consumer finance lenders, with total liabilities of INR 506.0 billion against total equity of INR 157.3 billion. The debt-to-equity ratio stands at 2.8, driven by long-term debt of INR 440.6 billion. Liquidity is assessed as medium risk, with cash and equivalents of INR 23.2 billion insufficient to cover total debt, resulting in a negative net cash position. Operating cash flow is INR 4.9 billion, while free cash flow is INR 20.5 billion, supported by minimal capital expenditure of INR 0.3 billion.

Profitability metrics indicate efficient capital utilization for the sector, with a return on equity of 13.78% and a return on assets of 3.27%. The company generated net income of INR 21.7 billion on revenue of INR 199.0 billion, yielding a net margin of approximately 10.9%. Operating income was INR 51.8 billion, reflecting strong operational leverage before interest and tax expenses.

Segment and geographic data are not provided in the available input, preventing analysis of revenue concentration or regional exposure. The company’s activity is broadly defined as unclassified within the specific industry codes, though it falls under Consumer Finance.

Historical growth trends and quarterly revenue trajectories are absent from the input data, limiting the ability to assess momentum or cyclical positioning. The current financial snapshot represents the latest normalized period without comparative historical context.

Risk assessment highlights medium liquidity risk and low dilution risk, with a key flag noting negative net cash after subtracting total debt. The dilution risk is low, as basic and diluted shares outstanding are identical at 951.6 million, indicating no significant in-the-money options or convertible instruments impacting share count.

Recent analyst observations show a mean price target of INR 742.48 and a median target of INR 730.00, with a mean recommendation of 2.88 (neutral to buy). There are 5 strong buy and 4 buy ratings against 6 hold ratings, suggesting cautious optimism among analysts. No specific filing, news, or transcript observations are provided in the input data.

Revenue grew at a 16.8% CAGR over four years, demonstrating strong top-line expansion momentum.

Analysts project 18.6% upside to a mean price target of 742.48 from current levels.

Free cash flow increased 19.3% year-over-year, reaching 20.5 billion INR in the latest period.

Debt-to-equity ratio of 2.8 is in the bottom quartile, signaling high financial leverage risk.

Operating income declined 10.0% year-over-year, suggesting weakening core profitability despite revenue growth.

The company faces a high credit risk flag, indicating potential challenges in loan quality or defaults.

Cash conversion of 0.23 is in the bottom quartile, reflecting poor cash generation relative to earnings.

Net income CAGR of 7.6% lags behind the 16.8% revenue CAGR, showing margin compression trends.

Revenue INR 49.34B, +5,6% YoY; Operating income −5,8% YoY.

• ▍Revenue INR 49.34B, +5,6% YoY
• ▍Operating income −5,8% YoY
• ▍Net income +14,0% YoY
• ▍Net margin 12.3%

Revenue INR 51.27B, +11,0% YoY; Operating income +9,2% YoY.

• ▍Revenue INR 51.27B, +11,0% YoY
• ▍Operating income +9,2% YoY
• ▍Net income +45,2% YoY
• ▍Net margin 10.9%

Revenue INR 49.61B, +12,2% YoY; Operating income −1,1% YoY.

• ▍Revenue INR 49.61B, +12,2% YoY
• ▍Operating income −1,1% YoY
• ▍Net income +10,0% YoY
• ▍Net margin 9.0%

Revenue INR 48.77B, +11,9% YoY; Operating income −2,7% YoY.

• ▍Revenue INR 48.77B, +11,9% YoY
• ▍Operating income −2,7% YoY
• ▍Net income −6,5% YoY
• ▍Net margin 11.4%

Revenue INR 46.74B; Operating income INR 13.56B.

• ▍Revenue INR 46.74B
• ▍Operating income INR 13.56B
• ▍Net margin 11.4%

Revenue INR 46.19B; Operating income INR 11.98B.

• ▍Revenue INR 46.19B
• ▍Operating income INR 11.98B
• ▍Net margin 8.3%

Revenue INR 44.21B; Operating income INR 11.98B.

• ▍Revenue INR 44.21B
• ▍Operating income INR 11.98B
• ▍Net margin 9.1%

Revenue INR 43.59B; Operating income INR 14.42B.

• ▍Revenue INR 43.59B
• ▍Operating income INR 14.42B
• ▍Net margin 13.6%

Revenue INR 199.00B, +10,1% YoY; Operating income −10,0% YoY.

• ▍Revenue INR 199.00B, +10,1% YoY
• ▍Operating income −10,0% YoY
• ▍Net income +13,1% YoY
• ▍Free cash flow +19,3% YoY
• ▍Net margin 10.9%

Revenue INR 180.72B, +6,5% YoY; Operating income −1,0% YoY.

• ▍Revenue INR 180.72B, +6,5% YoY
• ▍Operating income −1,0% YoY
• ▍Net income −20,4% YoY
• ▍Free cash flow −20,6% YoY
• ▍Net margin 10.6%

Revenue INR 169.68B, +24,2% YoY; Operating income +25,0% YoY.

• ▍Revenue INR 169.68B, +24,2% YoY
• ▍Operating income +25,0% YoY
• ▍Net income +6,6% YoY
• ▍Free cash flow +2,4% YoY
• ▍Net margin 14.2%

Revenue INR 136.67B, +28,0% YoY; Operating income +50,7% YoY.

• ▍Revenue INR 136.67B, +28,0% YoY
• ▍Operating income +50,7% YoY
• ▍Net income +39,7% YoY
• ▍Free cash flow +27,1% YoY
• ▍Net margin 16.5%