Bull of the Day: Stock that was the top gainer on Nifty

Infrastructure finance company, Infrastructure Development Finance Company (IDFC) was the top gainer on the Nifty today. The share closed at Rs 145.65, up Rs 7.00, or 5.05% with volumes of 1,412,449 shares. There were pending buy orders of 16,874 shares, with no sellers available. The has touched an intraday high of Rs 146.60 and an intraday low of Rs 139.65.

Recently, the company has raised around Rs 765 crore through its second tranche of tax-free infra bonds issue, according to an official familiar with the development. (For more details on this click here). The company in January had said that it may come out with a third public offer of its long-term bonds if the sanctioned amount of Rs 3,400 crore is not crossed in the second tranche.

Results Corner: The company has reported a sales turnover of Rs 1,162.15 crore and a net profit of Rs 304.23 crore for the quarter ended Dec '10. For the quarter ended Dec 2009 the sales turnover was Rs 880.76 crore and net profit was Rs 240.11 crore. The company's trailing 12-month (TTM) EPS was at Rs 8.28 per share. (Dec, 2010). The stock's price-to-earnings (P/E) ratio was 17.59. The latest book value of the company is Rs 64.89 per share. At current value, the price-to-book value of the company was 2.24. The dividend yield of the company was 1.03%.

What analyst says:

However, Radhika Gupta, Director, Forefront Capital Management is bearish on the stock. She said, "If the investor is interested in the diversified financials and broadly the financing space, we think something like an HDFC is a good bet given the valuations. Though the recent round of results were good, we are bearish on IDFC. But in the same space if something like an HDFC or even an LIC Housing Finance which is housing finance not infra finance is a better bet."

She further added, "One can book the loss in IDFC and move into either an HDFC or an LIC. My view is that it is better to move out of something that is unattractive now and redeploy that into something where there is a better opportunity rather than waiting."

Shareholding Pattern: Foreign Institutional Investors holds 50.49% shares in the company. Central Government / State Government(s) and Insurance Companies holds 17.89% and 10.12% respectively. Total Institutions holding in stock is 87% rest held by Non-Institutions like - Bodies Corporate, Individuals etc.

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Share Price Movement During The Last 12 Months