IDFC Bank from IDFC, valuation and future earnings.

So do you get a sense of something earth shattering or out of the ordinary performance from the house of IDFC Bank? if not, is it not at best likely to be one of those share which will yield returns largely in line with LT market return.

Expectations running in here is this one is a sure shot 10x multibagger in 3-5 years... So 900 bucks in yr2020.

I agree that one may not see anything "earth shattering" here. Personally, I feel that NBFCs may be a better buy. I have Bajaj Finance and CAPF in my portfolio. I also have HDFC Bank which I am shifting steadily into the other stocks because it seems to have limited upside.

 

@carl : So do you get a sense of something earth shattering or out of the ordinary performance from the house of IDFC Bank? if not, is it not at best likely to be one of those share which will yield returns largely in line with LT market return.

Expectations running in here is this one is a sure shot 10x multibagger in 3-5 years... So 900 bucks in yr2020.

 

Target of 900 in 3 to 5 years for IDFC bank ,heard it first time ,no body discussed,might have been given by some Self Declared Self Styled Star Banker to himself. .Only 15% CAGR was discussed which is in line with conservative guidence given by management and in large cap it is reasonable looking to present valuations and long term growth story.

 

Calm down Sir. No need to escalate the issue. ICICI has projected a target price of Rs. 107 for IDFC Bank at 2.5x FY17E BV, which is quite reasonable. There has been a value unlocking because IDFC was quoting at 1.5x BV.

 

Respected Dear Carl Ichan, If you can go through my posts I had just said that among large cap stocks I expect it to be 10 baggers fastest in that category. No time frame was given.It was clearly mentioned that it is long term story of 5 years and beyond and comparative only among large cap universe...Never ever target of 900 was projected by me or any one else in 3 years.What ever was projected was based on facts and management guidence and management is on record of giving guidence of 15%.We had discussed Only out performance among largecap universe.We expect private banking sector to outperform largecap universe.And among private sector Banks ,projected good performance of IDFC bank due to lower valuations, lower base ,window for increasing FII stake % from present 24%.In many other private banks stakes of FII already being high ,flow of money will be less comparatively.That is all,from some where targets of 900 rs were generated for 3 years,these targets are like NPA of poor bankning created and apeared suddenly as poor defence from no where .

 

@ carl

Dont waste your time with the ignorants' who cant even figure out that 900 is nothing but multibagger 10x value of initial expected listing at 90/- per icici

Another interesting thread is dated 20th september from this same 'ignorant'

Quote :

I had already mentioned IDFC as fastest would be 10x baggers as my top pick among large cap in ,What will be next 10x or 100x multibaggers ?.IDFC bank balance sheet will be size of Yes Bank on first day iteslf on 1st October. Balance sheet has been cleaned by IDFC by every possible provisioning so that IDFC bank may be most clean bank.

End of quote

Holding company remains this 'ignorant's' fastest 10x multibagger - but which in its new holding company avatar attracting a certain valuation discount simply translates to actually a 10x + for the banking arm....

 

And the oscar for the category 'lame justifications' goes to this thread.

Its you who is battling to defend not me my friend....

 

Is there a large addressable profit pool? Yes. The Indian banking sector is poised to be the third largest banking system in the world over the next decade. Is there a management which can credibly leverage that? Yes. Dr. Lal and his team are world class. Is there a unique competitive lever ? Yes. Cost to income ratio will be lowest in the business. Will there be headwinds in the short term? Yes. Retail execution will be challenging. Would I still allocate a large percentage of banking sector to this stock in my portfolio? Yes. Do I think it is a multibagger? Certainly a long term wealth creator.

 

I would request a CEASE-FIRE from both parties and pray that attention be focused on the important issue of making money!!

 

I am a little worried about the RBI having issued 23 new banking licenses and stating that in future licenses would be available "on tap".

https://www.business-standard.com/a...nted-under-raghuram-rajan-115091800010_1.html

So, the entry barriers that Banks used to enjoy may not be there anymore (?)

 

@kharb

Smoking is injurious to health but for me engaging with kharb is injurious to my sensibilities

Dont have the guts to pick up my challenge about you and i disclosing our real profiles is it? Are you scared that i might really turn out to be an experienced banker and you will have to eat your words is it?

 

Normally growth in financial services sector is a 3x growth of GDP growth. So sector level growth is not an issue. Profit level growth will be a function of industry fragmentation levels, relative position in industry. IDFC Bank will be among the larger banks even to begin with; banking sector will witness consolidation going forward. So I would not be unduly worried on that score. Key risk is retail execution.

 

Dear Carl, I am amazed at poor knowldge of numbers put by Dear Star Banker.He has multiplied to get traget 90 x10= 900.That is fine.But from where his magic figures of 3 years was generated ,without time frame from me or any body else , I only stated that expecting to be among fastest 10 baggers among large cap and CAGR of 15%.Yes IDFC bank will hit 900 in long term ,with expected profit to rise 15% CAGR as per management conservative guidance.Without turning here and there trying to confuse others but exposing himself in the end ,I expect banker to explain where any body else or I stated that time frame is 3 years.I think Dear Sachin will come to the point I raised.

 

Read carefully its 3-5 years and not just bloody 3 years you keep ranting like a broken record..... And shut up if you dont have anything meaningful and self belief.... I'd rather have this limited to being between carl, fundamentalist and myself.....

No room for your types... So stay out henceforth

 

Your belief has actually got me interested into IDFC Bank...... Board level i agree is pretty sound with the presence of Ajay Sondhi and Abhijit Sen. Management team though isnt that hot.....

But i like your self belief and i do hope yours bear fruits. Nothing better than an additional opportunity to make money. But will wait for greenshoots to appear. Until then i stick to my belief - better wait and watch the execution

 

Dear Sachin, where any body else or I said ,it will be 10 baggers in in just 3- 5 years.U r just best in making endless Jalebi.

 

Dear Carl and Fundamentalist,pl go through my all posts and let me and others know where it was claimed to be 10 baggers in just 3-5 years.If it is so ,I am ready to say sorry to all friends including Dear Star Banker.Otherwise no body shoukd be allowed to spoil the healthy discussion.

 

Get the hell out of here....before i start being rude to you

Multi-bagger and a 10x or 100x now becomes as being the usual 15% CAGR stock - is an insult to a multi bagger

But for indivivuals like you devoid of intelligence and common sense, its greek and latin to you. You wont understand it.

Do you even know how many years will it take to get 10x at a CAGR 15% return? FYI it happens to be 17 years.

So learn to quit with grace and keep you absurd investment strategies to yourself.