@sanmar96 Thanks for the inputs. HDFC cards is not listed. So HDFC card valuation is unknown. SBI cards trades at 31 P/E (TTM) which is cheap considering 20+% sales and net profit growth in past 3 yrs. Even if we consider 15% in next 5 years CAGR, its cheap right now.
Only question to be asked is “Will SBI cards grow at 15% in next 5 yrs and maintain Net NPA < 1.5%?”. It does not matter whether they can do as good as HDFC cards or not.
Please share your view.
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