Hold IDFC, target of Rs 175: Rajesh Agarwal

Rajesh Agarwal, Head of Research of Eastern Financiers told CNBC-TV18, "One should hold IDFC because it is probably a candidate for the banking license. Secondly the fourth quarter numbers were quite encouraging. We saw gross and net non-performing assets (NPAs) both showing improvement."

He further added, "However there are concerns on the asset side because 43 percent of their loans are advances in the power sector and we all know that the power sector is reeling under problems. So that is the only concern which we have on this stock, but going forward with interest rates softening and cycle picking out we think once this interest rate starts coming down, these kind of companies are going to show good returns," he added.
"With the kind of assets, with the kind of pedigree this company has, and hopes of getting a banking license, one can definitely hold the stock with a target of Rs 175 in the next 9-12 months."