SBI CARD share price: Buy SBI Cards and Payment Services, target price Rs 1095: IIFL

SBI CARD share price: Buy SBI Cards and Payment Services, target price Rs 1095: IIFL

IIFL has buy call on SBI Cards and Payment Services with a target price of Rs 1095. The current market price of SBI Cards and Payment Services is Rs 1064.85.Time period given by analyst is Intra Day when SBI Cards and Payment Services Ltd. price can reach defined target.SBI Cards and Payment Services Ltd., incorporated in the year 1998, is a Small Cap company (having a market cap of Rs 100240.52 Crore) operating in Financial Services sector.For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 2450.94 Crore, down -.70 % from last quarter Total Income of Rs 2468.14 Crore and up 11.63 % from last year same quarter Total Income of Rs 2195.60 Crore. Company reported net profit after tax of Rs 304.61 Crore in latest quarter.Stock has given a flag pattern breakout on the hourly chart.Promoters held 69.4 per cent stake in the company as of March 31, 2021, while FIIs held 9.1 per cent, DIIs 5.5 per cent and public and others 16 per cent.

This Insider Has Just Sold Shares In SBI Cards and Payment Services Limited (NSE:SBICARD)

We note that a SBI Cards and Payment Services Limited ( ) insider, Vinay Kapoor, recently sold ₹7.3m worth of stock for ₹1,040 per share. That might not be a huge sum but it was 61% of their personal holding, so we find it a little discouraging.

SBI Cards and Payment Services Insider Transactions Over The Last Year

The Chief Product & Marketing Officer and Executive VP, Girish Budhiraja, made the biggest insider sale in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹1,087 each. So we know that an insider sold shares at around the present share price of ₹1,019. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign. Notably Girish Budhiraja was also the biggest buyer, having purchased ₹1.7m worth of shares.

In the last twelve months insiders purchased 2.00k shares for ₹1.7m. But insiders sold 671.51k shares worth ₹611m. Over the last year we saw more insider selling of SBI Cards and Payment Services shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:SBICARD Insider Trading Volume August 9th 2021

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that SBI Cards and Payment Services insiders own 0.04% of the company, worth about ₹404m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

So What Do The SBI Cards and Payment Services Insider Transactions Indicate?

Insiders sold SBI Cards and Payment Services shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. At Simply Wall St, we’ve found that SBI Cards and Payment Services has (1 is significant!) that deserve your attention before going any further with your analysis.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team (at) simplywallst.com.

What is the short-term outlook for SBI Cards stock?

I am holding SBI Cards at ₹1,036. What is the short-term outlook?

Sanjay Kaimal

SBI Cards and Payment Services (₹1,018.6): The stock of SBI Cards and Payment Services has been on a sideways consolidation phase since early March this year, in a wide band between ₹880 and ₹1,140. Within this sideways movement, the stock took support at around ₹920 in late July following a short-term downtrend. Subsequently, it began to trend upwards and conclusively breached the key psychological resistance at ₹1,000 in late July. Nevertheless, the stock met with a key resistance at ₹1,050 in the past week and has been in a near-term correction. Significant support at ₹1,000 is likely to provide base.

An upward reversal from this base can take the stock higher to ₹1,050. A conclusive break above this barrier will reinforce the bullish momentum and take it northwards to ₹1,080 and then to ₹1,120-1,140 band. A further breakthrough of this resistance zone can take the stock higher to ₹1,200 levels over the medium term. On the downside, if the stock tumbles below ₹1,000 it can decline to ₹960 and then to ₹920 levels in the short term. Next supports are placed at ₹900 and ₹880.

A fall below ₹880 will alter the sideways movement and drag the stock down to ₹840 and then to ₹800 levels over the medium term.

You can stay invested and average the stock in declines with a medium-term stop-loss at ₹870.

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