Goldman Sachs has initiated a sell call on SBI Card with a target price of Rs 654 which is a 30 percent potential downside from current levels. SBI Card has retained market share, they have been profitable during COVID as well but Goldman believes that the headwinds are going to intensify going forward.

Also, the rich valuations make the risk-reward very unfavorable for stock at current levels. They expect earnings degrowth or growth to moderate to 18 percent, in the next three years, between FY22- FY25 versus the last five years of 27 percent growth.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.