IDFC : A quick review
BSE: 532659 NSE: IDFC CMP: Rs. 135.50
IDFC is an interesting play on the finance and infrastructure development. Being a huge DFI, it is turning out to be having a potential of a multi-bagger on the lines of ICICI bank and HDFC bank
It has had a huge runup in price picking up from the lows of 44 to 147 last week. It has given up some gains in this week and is interestingly poised at 135
Based on the Mar 09 EPS of 5.68, it is sporting a P/E of >25, which from a fundamental view-point does not sound a bargain. It has shown promising EPS growth of > 25% yoy except for '09. Which is understandable given the slowing trend in the last year in lending.
With immense potential in infrastructure funding, its exposure to Investment banking and mutual and lot of unlocked value in many subsidiaries, much of which is not fully captured in the price, its valuation has room to grow
In spite of market correction in the last few days, IDFC's price march has been checked only a little. Even in the short term, IDFC may move up. Atleast 2 technical analysts/services have given a short term target of 168
Even those going long on this scrip would do well to book some profits if the short term targets are achieved and then re-enter the long exposure on the next significant market correction
IDFC is an interesting play on the finance and infrastructure development. Being a huge DFI, it is turning out to be having a potential of a multi-bagger on the lines of ICICI bank and HDFC bank
It has had a huge runup in price picking up from the lows of 44 to 147 last week. It has given up some gains in this week and is interestingly poised at 135
Based on the Mar 09 EPS of 5.68, it is sporting a P/E of >25, which from a fundamental view-point does not sound a bargain. It has shown promising EPS growth of > 25% yoy except for '09. Which is understandable given the slowing trend in the last year in lending.
With immense potential in infrastructure funding, its exposure to Investment banking and mutual and lot of unlocked value in many subsidiaries, much of which is not fully captured in the price, its valuation has room to grow
In spite of market correction in the last few days, IDFC's price march has been checked only a little. Even in the short term, IDFC may move up. Atleast 2 technical analysts/services have given a short term target of 168
Even those going long on this scrip would do well to book some profits if the short term targets are achieved and then re-enter the long exposure on the next significant market correction
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