In July 2022, the share price of IDFC First bank was ₹28. At that time, all were questioning the bank fundamentals. But now as the bank is trading near its all time high with current share price of ₹71.65, you might have a lot of questions like what can be IDFC First Bank Share Price Target in the coming years, and if its a good time to invest.
Private sector banks like IDFC and YES Bank are on the rise due to increased deposits compared to PSUs like Punjab National Bank.
IDFC First Bank Company details
IDFC First Bank is a private sector bank in India that was formed after the merger between IDFC Bank and Capital First in December 2018. The aim of the merger is to a robust retail-focused bank with a diversified portfolio of products and services.
The Bank was originally incorporated in 2014 as a specialized infrastructure financing institution, while Capital First was a non-banking financial company that was founded in 2002, specializing in providing loans to small and medium enterprises, as well as consumer finance.
IDFC First bank share price Target 2023
The 1st target for IDFC First Bank for 2023 is 76. The stock broke its previous resistance of 68 and is now on a continuous upward trajectory. Our second target is level 81. Now let us understand the factors that are making the bank strong.
The banks operations depend on deposits from the public, which it lends to others as loans. The difference in interest is what the bank earns. To be successful, a bank must have sufficient and growing deposits and a healthy loan profile with a very little percentage of bad loans or NPA (non-performing assets).
If we see IDFC First Bank’s annual report, it mentions that from March 2022 quarter to December 2022 quarter, the bank’s total deposits saw an increase of 32.25%. This increase shows us that people and institutions are gaining confidence towards the bank. This is a good thing for the bank as IDFC First is a relatively new bank, and people are cautious about their money before depositing in newly formed backs. Also, the last 4 years CAGR growth of IDFC First Bank is 34%.
The bank has been working to increase its share of retail deposits over wholesale deposits. This is a good decision as retail deposits are considered more stable and have lower funding costs.
IDFC First Bank share price Target 2024
In the 1st quarter of 2024, We can see targets up to level 85. IDFC First Bank’s share price Target in the second half of 2024 will be 95. Now let’s understand the factors that support this growth for the bank.
You might have heard about the term CASA (Current Account Savings Account) in banking sector. CASA deposits are a combination of current and savings accounts. They tend to be more stable than other types of deposits, which makes them a reliable source of funding for banks.
Moreover, since these accounts typically have lower interest rates, they can lead to lower funding costs for banks, contributing to higher profitability. IDFC First Bank has been seeing a continuous increase in its CASA deposits, which is a good sign for business growth. IDFC First Bank Share price Target on chart
IDFC First Bank Share price Target 2025
After the merger, the revenue of IDFC First Bank has been growing steadily, despite a slight decrease in 2021. This could be potentially due to COVID-19, when the economy was suffering. The bank strategically deploys its funds in different areas to minimize risk.
IDFC First Bank Share Price Target for 2025 will be level 105. In order to predict the price for longer term, we will need to analyse the company’s fundamentals.
IDFC First Bank Share Price Target upto 2030
| Year | Target 1 | Target 2 |
|---|---|---|
| 2023 | 76 | 81 |
| 2024 | 85 | 95 |
| 2025 | 105 | 115 |
| 2026 | 119 | 126 |
| 2027 | 131 | 138 |
| 2028 | 143 | 155 |
| 2029 | 162 | 167 |
| 2030 | 223 | 238 |
IDFC First Fundamental Details
- Market Cap: ₹ 44215.89 Cr.
- P/E: 18.14
- P/B: 1.72
- Div. Yield: 0%
- Net Interest Income: 9706.16 Cr.
- Cost To Income %: 74.6
- ROE: 0.75 %
- ROCE: 4.87%
- Profit Growth: -67.83
- CAR %: 16.74
- CASA %: 48.44
Financial Health of IDFC First Bank
- The company’s financial health is regarded as weak, and it might not be able to sustain any adverse condition.
- The bank has a high cost to income ratio of 74.6%, indicating that operational efficiency could be improved.
- The bank has maintained a consistent Net Interest Margin (NIM) of around 4.92% over the past 3 years, which is a good sign as it implies profitability from its core business operations.
Is it safe to invest in IDFC First Bank?
Let us understand this by studying the strengths and weaknesses of the Bank.
Strengths of IDFC First Bank
- Capital Adequacy Ratio (CAR) is good at 16.74% and a steady CASA ratio which signifies stability and low-cost deposit base.
- The Insiders and Investors have a strong belive on the banks fundamentals.
- The company’s ownership is very stable, with a significant holding by the President Of India
Weakness of IDFC First Bank
- IDFC First Bank has a low ROA track record and high provision and contingencies.
- The bank also has High Cost to income ratio of 74.60%.
IDFC First Bank Share price Short Term Targets
Conclusion
Hopefully, these IDFC First Banks share price targets will help you to plan your investment in a better way. However, as these targets are based on its current performance, It is important to study its balance sheet each year as they will indicate the company’s actual growth. Please consult a registered financial advisor before making any investment decisions.
FAQ's
What is Short term target for IDFC First Bank?
IDFC First Banks’s 1st short term target is ₹71, and its 2nd target is 73.4. Support level is 68.5 as our S1 and 66.9 as our S2.
What is 52Week high and 52Week low IDFC First Bank?
IDFC First’s 52 Week High: ₹ 68.2 and 52 Week Low: ₹ 28.95.
What is ROE of IDFC First in 1, 3 and 5 years?
Does President of India have holdings in IDFC First Bank?
The President of India has a significant amount of holding in IDFC First Bank. The value of the holding is ₹1872.93 Crores.
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