IDFC First Bank Hits 52-Week High, Shares Rally Nearly 10% As Brokerages Lift Targets
· Free Press Journal
Mumbai: IDFC First Bank shares jumped nearly 10 percent on Monday after brokerages raised their price targets following the private lender’s June-quarter results.
The stock touched a record 52-week high of Rs 88.76 on the NSE, up 9.86 percent from its previous close of Rs 80.79. At 11:27 am, it was trading 6.21 percent higher at Rs 85.81.
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The shares opened at Rs 86.30 and touched a low of Rs 85.35 during the session.
CLSA Upgrade
Brokerage CLSA upgraded IDFC First Bank to “outperform” from “hold” and raised its price target to Rs 95 from Rs 73.
CLSA said the bank had recovered strongly after the Haryana incident. Deposits grew 18 percent from the previous year, while the current account savings account ratio improved by nearly 300 basis points to 51 percent.
The brokerage also highlighted an improvement in asset quality, supported by a sharp fall in gross and net slippage ratios.
Targets Raised
Nomura increased its price target to Rs 95 from Rs 85. It also raised the bank’s FY27 and FY28 earnings per share estimates by 9 percent and 17 percent, respectively.
Nomura said the bank’s growth outlook remained strong and the impact of expected credit loss provisions appeared manageable. It expects lower credit costs to support return on assets during the year.
CBI Registers FIR In ₹550 Crore IDFC Bank Embezzlement CaseInvestec gave the bank the highest target among the brokerages mentioned, raising it to Rs 115 from Rs 96. Its positive view is based on improving asset quality, lower credit cost guidance and continued growth.
Growth Guidance
For FY27, IDFC First Bank expects loan growth of 20 percent and return on assets of around 1 percent. It raised its margin guidance to 5.8 percent and reduced credit cost guidance to 150–160 basis points.
High-Level Panel To Probe IDFC First Bank Case: Haryana CM Nayab SainiManagement said the microfinance portfolio had bottomed out and expects it to grow 15 percent this year.
Among 27 analysts covering the bank, 17 recommend buying the stock, six suggest holding it and four have a sell rating.
The rally also turned shares positive year-to-date.
Disclaimer: This article is for informational purposes only and does not constitute investment advice; investors should consult qualified financial advisers independently.