Banking Stock Tips: Market analysts believe that after the correction, now the shares of this private bank are getting attractive prices.
IDFC First Bank Outlook: Shares of private sector giant IDFC First Bank have become cheaper by about 35 percent so far this year and market experts are seeing a golden opportunity to invest in it. Considering the improvement in the asset quality and provision coverage ratio of the bank, analysts of the brokerage firm Geojit BNP Paribas believe that after the correction, its shares are now getting at attractive prices. For investing in this, the brokerage firm has set a target price of Rs 39, which is about 21 percent higher than the current price of Rs 32.35 on BSE.
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Why are you betting on IDFC First Bank?
- The bank has successfully shifted its focus from risk-averse corporate/infrastructure loans to retail loans.
- Its asset quality has improved and gross NPAs slipped from 4.15 per cent in the financial year 2020-21 to 3.70 per cent in the last financial year 2021-22. Apart from this, the provision coverage ratio has also improved to 70.3 percent.
- In view of all this, brokerage firm Geojit BNP Paribas has retained its buy rating.
Shares are available at huge discount of 41%
Shares of IDFC First Bank had reached a price of Rs 55 on July 1 last year, which is a record price of 52 weeks. Right now its price is Rs 32.35 i.e. at a discount of about 41 percent from the record high of 52 weeks. Shares of IDFC First Bank could not handle the rally in July last year and when it declined, it had slipped to a 52-week record low of 28.95 on June 22, 2022, a few days ago. However, since then it has gained 12 per cent and now according to market experts, it can strengthen by 21 per cent.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
