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IDFC First Bank share price: Buy IDFC First Bank, target price Rs 73: ICICI Securities

ICICI Securities has buy call on with a target price of Rs 73. The current market price of IDFC First Bank Ltd. is Rs 58.9. Time period given by analyst is one year when IDFC First Bank price can reach defined target.

IDFC First Bank Ltd., incorporated in the year 2014, is a banking company (having a market cap of Rs 35829.95 Crore).

For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 4834.19 Crore, down -.03 % from last quarter Total Income of Rs 4835.86 Crore and up 6.17 % from last year same quarter Total Income of Rs 4553.07 Crore. The bank reported net profit after tax of Rs 136.93 Crore in latest quarter.

Investment Rationale
Current return profile is dragged by high-cost structure, low fee income and elevated credit cost. Nonetheless, its marginal unit economics is superior and incremental retail disbursements have potential RoE of >20%. Going forward, key triggers for RoE improvement would be normalisation of cost to income ratio, retail fee income scale-up, and steady improvement in NIM trajectory. Key risks would be sustenance of cutting edge execution of stated strategy and elevated ‘cost to income’.

Promoter/FII Holdings
Promoters held 40 per cent stake in the company as of March 31, 2021, while FIIs held 11.9 per cent, DIIs 10.5 per cent and public and others 36.9 per cent.

(Views and recommendations given in this section are the analysts’ own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.)

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