Arihant Capital is bullish on IDFC First Bank has recommended buy rating on the stock with a target price of Rs 39 in its research report dated July 29, 2020.
Arihant Capital 's research report on IDFC First Bank
IDFC FIRST Bank reported another healthy set of quarterly earnings. NII increased by 38.4% YoY/4.0% QoQ to Rs 1,626 Cr, PPOP increased by 180% YoY/71.5% QoQ to Rs 892 Cr and Net Profit increased to Rs 94 Cr, against Rs 617 Cr loss in Q1FY20. Other income increased on account of treasury gains of the bank. The bank has taken provisions of Rs 764 Cr for the quarter, of which Rs 375 Cr is contingent Covid-19 provision during Q1FY21.
We assign an exit P/adj. BV multiple of 1.2x on FY22E adj. BV of INR 32.3 for standalone bank, arriving at a Target Price of INR 39 with a BUY rating.
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