The brokerage cited slower growth and pressure across key operating parameters in the fourth quarter of FY26 as the reason for the downgrade.
It also trimmed its earnings estimates by 1% and 9.4% for FY27 and FY28, respectively, factoring in weaker growth and revenue assumptions. HSBC said it values SBI Cards at 2.3 times its FY28 estimated book value per share.Also read: Piramal Finance shares jump 11% after strong Q4; stock has no ‘sell’ ratings
Jefferies
Jefferies retained a ‘hold’ rating with a target price of ₹700, noting that adjusted profit after tax (PAT) for the March quarter fell 2% year-on-year to ₹5.2 billion, below its estimate of ₹6 billion.
The brokerage attributed the miss to weaker growth in net interest income (NII) and fee income. While net slippages improved sequentially and credit costs were in line, Jefferies flagged disappointment in receivables growth and a decline in the revolver mix.It cut its FY27–28 earnings estimates by 4–6%, adding that portfolio de-risking could cap asset growth and weigh on returns.
UBS
UBS also maintained a ‘neutral’ stance and reduced its target price to ₹780, highlighting subdued growth despite a sequential improvement in asset quality.
The brokerage noted that while credit costs declined, overall performance missed expectations. Spending grew 31% year-on-year in the quarter, but receivables rose only around 2%.
UBS said management expects loan growth to lag spending growth even in FY27, and added that current valuations appear fair with no immediate catalysts.
Bloomberg Analyst consensus data shows 12 out of 28 analysts tracking SBI Cards have given the stock a ‘Sell’ rating, while nine say ‘Buy’ and seven have given a ‘Hold’ rating.
The stock has gained nearly 5% in the last month, but has declined 26.5% over the six months.
