IDFC and IDFC Bank

Hello everyone

Loads of chatter on how the management is undermining investor interest ; what is the real outlook for these two firms and is it worth holding on to them or exiting?


Feedback will be deeply appreciated.

Regards

 

Sorry I have no personal knowledge of IDFC Bank but there is lot of talk about IDFC Bank in two places

IDFC Bank from IDFC, valuation and future earnings.

Don't you think Bank business has lost the moat with number of bank licenses issued by RBI and also being "on tap" in future. At one time bank business was monopoly now it is not so.

I think if you want to be in finance space it is better to go for specialist lenders like NBFC like Bajaj Finance, SKS Microfinance, Capital First. Even housing finance is good space with good stocks at cheap valuations like Dewan Housing, Repco Home Finance, Can Fin etc.

 

that's some claim, would like to know more about it, i'm actually considering it for my portfolio

 

Guess my stand on IDFC bank stands vindicated

BoAML. - has initiated coverage on IDFC Bank with a neutral rating and target price of Rs 70 per share. It believes the transition to a bank will be painful, as it expands distribution and meets regulatory requirements, hurting its profitability.

Goldman Sach - also has initiated coverage on IDFC Bank with a sell rating and a target price of Rs 57 per share. It feels that the business strategy appears mixed and is unlikely to lead to a strong retail build out in the near-to-medium term, which could have otherwise, partially offset the high regulatory cost. As a result, Goldman Sachs expects IDFC Bank to deliver below median return on assets (ROAs) by FY21 and lower headline loan growth versus other private banks.

 

Two divergent views ! The optimist would side with BoAML and the pessimist GS.

 

I think both reflect varying degrees of pessimism...