IDFC First Bank at record high

IDFC First Bank's share price has been on a strong bullish trend for over a year now, surging over 110% in the last year against an 11% gain in the Sensex. Here's an overview of the bank's recent performance and what experts have to say about its prospects:

Recent Performance:

• IDFC First Bank reported a net consolidated profit of ₹765 crore for Q1FY24, marking a 61% increase from ₹474 crore in the corresponding quarter of the previous fiscal.
• The bank's net interest income grew by 36% from ₹2,751 crore in Q1FY23 to ₹3,745 crore in Q1FY24.
• The core operating profit of the bank increased by 45% to ₹1,427 crore from ₹987 crore during Q1FY23.
• The net interest margin (NIM) improved from 5.77% in Q1FY23 to 6.3% in Q1FY24 but declined slightly from 6.4% recorded during the previous quarter.

Fundamental Views:

• Jehan Bhadha, Senior-AVP, Equity Research at Nirmal Bang, highlighted that IDFC First Bank has transformed from a predominantly wholesale bank with higher NPAs to a diversified and digital-oriented retail bank, both on the assets and liability sides.
• Bhadha sees strong loan growth, industry-best margins, and a reduction in cost-to-income ratio driving higher returns on assets (RoA) and return on equities (RoE) for the bank. He values the bank at ₹110 per share.

Technical Views:

• Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, noted that the stock has indicated a breakout above ₹90 with a positive bullish candle pattern on the daily chart. She expects the next upside near-term target to be around ₹98-99 with a longer-term target of ₹110 and thereafter ₹145.
• Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, mentioned that the stock is making a bearish butterfly structure near ₹101-102 on the monthly chart, which could act as a significant resistance zone in the near future. Short-term traders can consider buying near ₹90-92 levels with a stop loss of ₹86 and a target of ₹101-102.
• I also analysed the chart and found that it has given breakout above ₹85 and recommending to buy/hold for a target of 115-120.

Overall, IDFC First Bank seems to be on a growth trajectory, with a focus on retail banking and strong financial performance. Investors and traders should consider both the fundamental and technical aspects before making investment decisions.

Read the detailes Q1FY24 result ananlysis of IDFC First Bank by Motilal Oswal.

Disclaimer: Any views and investment tips expressed by any investment experts on my blog are their own and not those of the mine or website. I advises users to consult/check with certified experts before taking any investment decisions.