Up 25% in 2025 so far, this largecap stock will trade ex-dividend today; check price targets

SBI Card shares ex-dividend & target price: Shares of SBI Cards & Payment Services Ltd (SBI Card) shall trade ex-dividend today. The financial services player had announced an interim dividend of for their eligible shareholders, along with the quarterly results for the period ended on December 31, 2024.

The company board of SBI Cards & Payment Services had declared an interim dividend of Rs 2.50 per share, or 25 per cent (face value of Rs 10 each) of the company for the financial year 2024-25, said the exchange filing. "The record date for the purpose of determining the entitlement of payment of interim dividend is Tuesday, February 25, 2025 and the said interim dividend will be credited/dispatched on or before March 18, 2025," it added further.

Shares of SBI Cards and Payment Services had settled at Rs 839 apiece, rising nearly half a per cent. The total market capitalization of the company stood close to Rs 80,000 crore. The stock has gained nearly 25 per cent in the year 2025 so far, while it is up 30 per cent from its 52-week low at Rs 649 hit in June 2024.

SBI Card &Payment Services reported a 30 per cent YoY decline in its consolidated net profit at Rs 383.2 crore for the December 2024 quarter. Its consolidated revenue from operations rose slightly by a per cent to Rs 4,767 crore However, net interest income (NII) decline of 3.5 per cent YoY to Rs 3,790.1 crore.

In its latest report, foreign brokerage firm Morgan Stanley has maintained an equal-weight rating on SBI Cards. It said that January spending market share increased to 15.7 per cent from 15 per cent on a month-on-month (MoM) basis. January spend grew 2.7 per cent YoY MoM compared to a 2.1 per cent fall in the industry, with an increase in market share in terms of number of cards in the market. Morgan Stanley has a target price of Rs 685 on the stock.

On the other hand, HDFC Securities had downgraded the stock to 'reduce' from 'add' post its Q3 results with a target price of Rs 637. Multiple headwinds to SBI Card's profit pools including a lower revolve mix, regulatory pressures on profit pools such as overlimit and penal charges, shrinking interchange, and higher credit costs are likely to imply structurally lower RoA/RoE as a new normal, it said.

Focus on EMI balances in the absence of levers to improve revolver balances alongside stable CoF, which are expected to support NIMs, said Axis Securities. Fee income should find support as business momentum picks up. As asset quality headwinds recede, driving down credit costs, we expect SBIC’s RoA/RoE to recover and range between 3.8-4.5 per cent/18-22 per cent over FY26-27E, it was added with an 'hold' tag and a target price of Rs 780.