BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
SBI Cards and Payment Services Ltd., India's second largest credit card issuer, has established itself as an enviable franchise, delivering on all fronts (~40% earnings per share compound annual growth rate from FY18 to FY20, ~5-6% return on asset, prudent risk management, etc.).
With a balanced customer acquisition strategy across open market and banca (Stata Bank of India), SBI Cards has diversified its revenue streams (fee income at ~50% of total income) to drive earnings, which is poised for a 45% earnings per share CAGR over FY21-FY24E.
A highly profitable segment globally, credit cards are severely underpenetrated in India and hence, primed for a long growth runway.
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