Mar 26, 2013, 04.25 PM | Source: Moneycontrol.com
Firstcall Research is bullish on IDFC and has recommended buy rating on the stock with a target of Rs 162 in its March 25, 2013 research report.
, Firstcall Research |
“IDFC Ltd is India's leading integrated infrastructure finance player providing end to end infrastructure financing and project implementation services, reported its financial results for the quarter ended 31st Dec, 2012. The third quarter witnesses a healthy increase in overall sales as well as profitability. The company net profit jumps to Rs.4686.70 million against Rs.3870.84 million in the corresponding quarter ending of previous year, an increase of 21.08 percent. Revenue for the quarter rose 24.46 percent to Rs.19691.80 million from Rs.15822.31 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.3.09 a share during the quarter, registering 17.01 percent increase over previous year period. Profit before interest, depreciation and tax is Rs.18726.40 millions as against Rs.14220.79 millions in the corresponding period of the previous year.”
“At the current market price of Rs 143, the stock P/E ratio is at 12.34 x FY13E and 11.63 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.11.59 and Rs.12.29 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 26 percent and 13 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 8.22 x for FY13E and 7.34 x for FY14E. Price to Book Value of the stock is expected to be at 1.56 x and 1.37 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 162 for medium to long term investment,” says Firstcall Research report.
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