With stellar returns, SBI Cards a good bet despite premium valuation

Following robust returns provided by SBI Life Insurance within three years of listing, the market is quite positive on SBI Cards and Payment Services (SBI Cards). Strong fundamentals, coupled with a healthy growth potential and an attractive return profile, makes the IPO — opening on March 2 — a good bet despite its premium valuation. At 45-46x price-to-earnings and 15x price-to-book value (based on annualised numbers of April-December 2019), the valuation is way higher than global credit card peersand at a premium to domestic well-established lenders. Rohan Mandora, vi.....

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel
Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.