Buy IDFC First Bank; target of Rs 39: Arihant Capital

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.

Outlook

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.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More