idfc ltd has a total investments in associates at 11,221 cr. IDFC first bank has a net worth of around 24,000. 40% of this is around 9300 cr. Hence this 9300 should be the investment in associates on IDFC ltd balance sheet from its investment in IDFC first bank. Rest 1900 cr is from its other investments. IDFC first bank has a market cap of 42,237 cr. 40% of this yields a value of 16900cr. Hence actual value of idfc ltd should be 1900 cr + 16900 cr= 18800 cr. This is more than 30% premium to current market cap. Hence I believe IDFC ltd is undervalued. Please correct me if wrong.
Disc- Invested in IDFC ltd.
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