SBI Cards Okays Rs 2.50/Share Dividend: March 28 Fixed As Record Date; Buy?

With a market valuation of Rs 66,340 Cr, SBI Cards and Payment Services Ltd is a large-cap NBFC firm. During the morning trade on Wednesday, the BSE saw a 0.06% spike in the share prices of SBI Cards and Payment Services. This was due to the company's announcement of an interim dividend of 25% per equity share, with a face value of Rs. 10/-each.

SBI Cards and Payment Services Dividend

"In continuation of our letter dated March 14, 2024, intimating about the Board Meeting to be held on March 19, 2024, 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 2023-24. The Record Date for the purpose of determining the entitlement of payment of Interim Dividend is Thursday, March 28, 2024 and the said Interim Dividend will be credited/ dispatched on or before April 17, 2024," said SBI Cards and Payment Services in a BSE filing on March 19, 2024.

SBI Cards and Payment Services News

Last month on February 28, 2024, the Stakeholders' Relationship and Customer Experience Committee of the company approved the allotment of 750 fixed rate, unsecured, rated, taxable, redeemable, subordinate Tier II, listed, non-convertible debentures (NCDs) of the face value of Rs. 1,00,00,000 each at an aggregating to Rs. 750 crores, on private placement basis with a coupon rate of 8.29% p.a.

February 28, 2024 is the date of allotment and February 28, 2034 is the date of maturity. Debentures will be redeemed on February 28, 2034, at face value, which means that they will be redeemed after ten (10) years from the date of allotment, which is February 28, 2024.

SBI Cards and Payment Services Financials

In the third quarter of FY24, the company's net profit jumped by 8% to Rs 549 crore from Rs 509 crore during the same time the previous financial year. From Rs 3,656 crore in Q3 of the previous fiscal year to Rs 4,742 crore in Q3 of FY24, the total income jumped by 30% YoY. According to SBI Card, as of December 31, 2023, its gross non-performing assets (GNPAs) climbed from 2.35 per cent as of March 31, 2023 to 2.64 per cent. As of December 31, 2023, net non-performing assets (NPAs) were 0.96 per cent, compared to 0.87 per cent on March 31, 2023. In the December quarter of the fiscal year 2024, its total expenses increased to Rs 4,004.01 crore from Rs 2,971.82 crore during the same time in the previous fiscal year. The overall balance sheet size of SBI Card was Rs 55,576 crore as of December 31, 2023, compared to Rs 45,546 crore on March 31, 2023.

SBI Cards and Payment Services Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said trading at Rs 694.30, SBICARD continues to exhibit a clear bearish trend, marked by a series of lower lows and lower highs on the charts.

Furthermore, SBICARD has closed below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating strong negative momentum and the potential for further price declines. The Relative Strength Index (RSI) at 38 suggests that the stock is currently sideways to bearish, signalling a possible continuation of the downward trend.

The nearest support level for SBICARD is at Rs 680. A breach below this level could trigger additional selling pressure in the stock. Investors looking to enter a long position in SBICARD should exercise caution and wait for a significant reversal above Rs 730.

A breakout above Rs 730 could attract buying interest in the stock, potentially driving the price towards Rs 780 and Rs 800. To manage risk, a stop-loss (SL) at Rs 710 is recommended for long positions.

In summary, SBICARD remains in a bearish trend, and investors should closely monitor its price movement. It is advisable to be cautious and wait for a clear reversal signal before considering long positions.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.