With all due respect to your experience, I would like to submit a few counter arguments. These are as follows -
IDFC First reported an advances growth of 24 pc in Q2 disclosure to the exchanges which is 1.5 times the Industry growth.
It reported a deposit growth of 36 pc in Q2 disclosure to the exchanges which is almost 3.5 times the industry growth !!!
Their CASA has grown from 10 odd pc to north of 50 pc in the last 3 yrs.
The Bank enjoys very good customer feedback and reviews.
Once the gross NPAs come down to 2 pc range and Net NPAs to 1pc range ( if it happens ), the bank may be in for a structural re-rating and may start to command PE multiples in the 20s… provided the credit and deposit growth sustains.
By the looks of it, IMO most of the pain should be behind and the bank may be staring at a very bright future. Such solid deposit, credit, CASA numbers sustained over a period of time can potentially be a recipe for a multi bagger.
Just wanted you and others to keep this in mind before making a buy/exit decision.
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