SBI Cards stock sees investor interest revival on hopes of faster recovery

While Q2 will reflect the real asset quality picture, focus on non-discretionary spends, strong customer sourcing support to aid business

The stock of SBI Cards and Payment Services (SBI Cards), which was hit by the pandemic-led market crash after its listing in March, has seen a revival in investor interest.

With expectations of a faster recovery in business, it has recovered 27 per cent and is approaching its initial public offering (IPO) price of Rs 755. And, analysts say, there is further upside potential of 30 per cent.

Factors such as focus on non-discretionary spends and strong customer sourcing support of its parent — State Bank of India (55.3 per cent of overall source mix) — augur well, more so when digital/online