I’m getting a bit worried about the valuations. Current TTM at rs. 830 is 85! Even if sbi cards gets 2000 crores net profit this fiscal year their PE will be 40 at the current price. So we are basically hoping for a minimum of 500 to 600 crores profit each of the next few quarters and with the covid and moratorium overhangs no less. While I’m confident regards the company doing well I’m not sure regards the valuations and what the upside is from here this year. Is the market looking at it as a fin tech company instead of just a finance company and hence comfortable giving it high valuations similar to the likes of Affle etc or will the PE revert to mean if results aren’t extraordinary? That being said during the lockdown they did manage 393 crores so considering the various unlocks and the amazon sale maybe 500+ crores will be easy enough for them to manage even with physical POS and transactions on the lower side. Walking a valuation tightrope here though
Invested at lower levels and not booked any profit yet but the high valuations are getting me a bit worried
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