SBI Group Stock Will Trade Rs 2.50/share Ex-Dividend, Buy For 32% Strong Gains: ICICI Securities

SBI Cards and Payment Services Ltd., an SBI group company, on March 21, 2023, Declared an Interim Dividend of Rs. 2.50/- (25 %) per equity share for the financial year 2022-23. The "Record Date" for the purpose of determining the entitlement of payment of Interim Dividend is fixed as Wednesday, March 29, 2023.

Post the declaration of the dividend, the leading brokerage firm ICICI Securities has placed a "Buy" on SBI Cards and Payment Services Ltd with a target price of Rs 953 apiece. The stock is likely to give up to 32% return if purchased at the current market price. SBI Cards is a large-cap stock operating in the financial services sector. It has a market capitalisation of Rs 68,426.13 crore.

SBI Cards' Share Price, 52 Week Low & High, and Returns

The Share of SBI Cards last traded at Rs 723.55 apiece, down 0.47% as compared to the previous close. It recorded the 52 week high at Rs 1,028.65 apiece on 7 August 2022 and 52 week low at Rs 655.70 apiece on 20 June 2022, respectively.

It has given 3.05% negative return in the last 1 month and 6.18% in the past 3 months, respectively. In the last year it has given 14.23% negative return. In the last 3 years, it has given 17.9% positive return. Since its listing date, it has given 6.19% positive return. It was listed on 16 March 2022.

Valuations appear attractive in light of promising business potential beyond external overhangs

ICICI Securities has said, "Maintain BUY with a revised target price of Rs 953 (earlier: Rs1,040) based on 30x Sep'FY24E earnings (earlier: 35x). This cut in multiples primarily stems from overall rising regulatory risk in the system in the entire diversified financial space. However, considering the RoA/RoE profile of ~5/25% this multiple adequately factors in these risks, in our view."

Declared an Interim Dividend of Rs. 2.50/- (25%) per equity share

According to the regulatory filing by the Board of Directors of SBI Cards and Payment Services Ltd, "In continuation of our letter dated March 16, 2023, intimating about the Board Meeting to be held on March 21, 2023, we wish to inform you that the Board of Directors of the Company, at its meeting held today, has inter alia, declared an Interim Dividend of Rs. 2.50/- (Rupees Two and Fifty Paise) (25 %) per equity share (face value of Rs. 10/­ each) of the Company for the financial year 2022-23. The Record Date for the purpose of determining the entitlement of payment oflnterim Dividend is Wednesday, March 29, 2023 and the said Interim Dividend will be credited/dispatched on or before April 19, 2023."

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