Sbi Card ipo issue price was at 755rs per share and listed on stock exchanges on 16 March 2020. After the listing we are seeing Downtrend. It is very disappointing situation for those people who are entering in stockmarket through applying for Sbi card ipo. This is actually a by chance and crash in market is temporary and part of the business.
Here are some points BofA securities said on SBI card and gave big target.
Bank of America securities has initiated coverage of Sbi cards& payment services with a buy rating. Citing strong long term prospects backed by a diversified model.
BofA securities said in a note " After factoring the near term impact of covid-19, we see strong long -term growth supported by SBIC's diversified model.
For FY21 the brokerage factors in 4 percent lesser credit spend.
BofA said SBI backing should ensure no major liquidity issues.
The brokerage pegged the target price for the stock of the country's second largest credit card issuer at rs 680. Which implies 27 per cent upside from it's current market price 540.
The brokerage said its "Buy"rating was premised on under penetration of the credit card industry with SBI cards being the only listed pure-play credit card company. With the ability to cross sell to SBI's vast customer base through project Shikhar.
SBI cards was the most-talked about IPO in recent times. When it was launched early march. Despite the onset of the coronavirus pandemic. The ipo was subscribed 26times. The shares were issued at rs755.
This could be a good stock to buy during this crash.
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