anish

Originally Posted by anish

IDFC is recommended to buy with a six month target price of Rs.210. The stock is currently traded around Rs.180.

 It is expected that the loan portfolio would increase by 41% in FY11 as against the earlier projection of 25% growth. This is based on the performance of the company in 1QFY11. It is expected that the momentum would continue for the whole year.

 The company is working with a balance sheet target of Rs.1000 billion by FY14. This implies a growth of 35% CAGR for the next three years.
 For FY11, net interest income is expected to grow at 46.7% and at the rate of 31.7% for FY12.

 Net interest margin is at the rate of 2.7% now, which would stabilize in the range of 2.3 – 2.5% for the rest of FY11 and FY12.

 At the target price of Rs.210, the stock is valued at 2.7 multiple of FY 12 expected book value and at 19.9 multiples of FY12 expected earnings.