Skip to main content


IDFC is caught in the crosswinds of capital constraints, macroeconomic headwinds and a financial market downturn. But, core fundamentals, management quality and long-term value proposition remain attractive.

In 1Q09, income from investments and investment banking fees declined as capital markets went on a downturn. The ongoing downturn in the capital market will be good for the company's private/project equity business. In the short term, we expect RoI on existing assets to fall, though this should enable IDFC to acquire stakes at much reasonable valuations. The longterm benefits far outweigh the negatives from the expected fall in RoI.

Asset quality remains healthy with zero net NPLs. IDFC management flagged macro headwinds and indicated that it was not going to grow its loan book aggressively.

IDFC is expected to report an EPS of Rs 7.2 for FY09. ABN Amro Equities has set a Target Price of Rs 125, downward revision from Rs 181.IDFC would trade at 17.6x FY09F EPS and 2.4x FY09F book. ICICI Securities has set a target price of Rs 145 on IDFC stock.

Popular posts from this blog

NSE Trading Holidays 2024

 Trading holidays for the calendar year 2024. The National Stock Exchange of India (NSE) has notified trading holidays for the calendar year 2024 as below: Muhurat Trading:  Timings of Muhurat Trading shall be notified subsequently. 

Historical BSE Sensex returns - updated 2013

We have already seen the historical returns of the BSE Sensex, which indicated an average return of about 20%  per year, despite many yearly returns varying from -20% to +60%. The following table shows BSE Sensex historical data - open, close and the yearly returns of the sensex from 2000 to 2012. There are some interesting points to note from the above table. Post 2008 crash of about 50% and 2011 negative returns of 24%, markets have given positive returns of 81% and 25%. Also the average returns for the past years is about 20% despite the markets being down 24%. The lesson is pretty much clear - long term investing pays and one need not bother too much about the ups and downs of the markets. During the past few years, the returns from investing in individual stocks have been varied.  Despite markets being at 2 year highs, only a few stocks are at similar highs, while most of them are still languishing well below their historical highs and are down anywhere between 8