On June 26, SBI Cards and Payment Services shares declined 3% after Nomura lessened the stock to ‘reduce’, dropping its target price by 32%.

The global brokerage firm has reviewed the target price to Rs 700 from Rs 1,030 per share.
Though, the stock came off its day’s low. At 9:24 am, the company’s shares traded 1% lower at Rs 848.6 on the BSE.

The stock recorded a 52-week high of Rs 1,028.75 and a 52-week low of Rs 690.90 on August 17, 2022, and January 30, 2023. It trades 17% below its 52-week high and 23% above its 52-week low.

Nomura believes the payment services business’s profitability will continue under pressure and that the credit card industry development is moderating, and the company will lose its market share accordingly.

The industry landscape is fluctuating with an upsurge in riskier consumer segments. It also observes the benefit of policy rate pause or cuts on the cost of funds to accumulate only in FY25.