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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539437 | NSE: IDFCFIRSTB

IDFC First Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:03 pm

Market Cap 46,073 Cr.
Current Price 62.9
High / Low92.4/59.2
Stock P/E19.9
Book Value 45.6
Dividend Yield0.00 %
ROCE6.93 %
ROE10.1 %
Face Value 10.0
PEG Ratio0.32

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for IDFC First Bank Ltd

Competitors of IDFC First Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fino Payments Bank Ltd 2,735 Cr. 329467/24929.3 77.30.00 %7.07 %14.4 % 10.0
Yes Bank Ltd 59,969 Cr. 19.132.8/19.033.5 14.30.00 %5.83 %3.18 % 2.00
Ujjivan Small Finance Bank Ltd 6,322 Cr. 32.763.0/32.65.43 28.74.59 %11.1 %26.7 % 10.0
South Indian Bank Ltd 5,876 Cr. 22.436.9/22.24.85 33.71.34 %6.19 %13.8 % 1.00
Karnataka Bank Ltd 7,538 Cr. 200287/1925.62 2882.75 %6.24 %13.7 % 10.0
Industry Average159,236.10 Cr403.0514.41197.151.01%7.10%13.93%5.95

All Competitor Stocks of IDFC First Bank Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Revenue3,9934,0894,1014,4294,5544,9225,4705,9126,4246,8697,3567,8808,220
Interest2,0321,9041,8281,8491,8842,1702,4672,6262,8273,1223,4063,5923,750
Expenses2,7243,8932,8232,9583,0312,9573,3043,6123,9014,1144,3774,8745,164
Financing Profit-763-1,708-550-378-361-205-301-326-303-367-427-587-694
Financing Margin %-19%-42%-13%-9%-8%-4%-6%-6%-5%-5%-6%-7%-8%
Other Income8188427307698318561,0611,1521,3981,3641,4101,5171,642
Depreciation0000000000000
Profit before tax55-8651793914706507608271,094996983930948
Tax %-147%28%38%26%25%25%25%25%25%27%24%21%23%
Net Profit137-621111290352485567617816732747732732
EPS in Rs0.24-1.000.180.470.570.780.910.991.231.101.111.041.04
Gross NPA %
Net NPA %

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue8,5789,09812,20416,24015,96817,17322,72830,325
Interest6,5157,1268,74310,2288,5857,46510,09113,870
Expenses1,4321,7894,7029,7608,73312,32313,33818,529
Financing Profit631184-1,241-3,748-1,350-2,615-701-2,075
Financing Margin %7%2%-10%-23%-8%-15%-3%-7%
Other Income1,0191,1208241,7222,2113,1734,4675,932
Depreciation1361682,8203203433824350
Profit before tax1,5141,135-3,237-2,3465191753,3313,857
Tax %30%16%41%-21%7%24%25%24%
Net Profit1,019880-1,908-2,8434831322,4852,942
EPS in Rs3.002.58-3.99-5.910.850.213.754.16
Dividend Payout %25%29%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-13.64%-316.82%-49.00%116.99%-72.67%1782.58%18.39%
Change in YoY Net Profit Growth (%)0.00%-303.18%267.81%165.99%-189.66%1855.25%-1764.19%

IDFC First Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:20%
3 Years:24%
TTM:27%
Compounded Profit Growth
10 Years:%
5 Years:29%
3 Years:84%
TTM:-20%
Stock Price CAGR
10 Years:%
5 Years:8%
3 Years:10%
1 Year:-24%
Return on Equity
10 Years:%
5 Years:3%
3 Years:8%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital3,3993,4044,7824,8105,6766,2186,6187,070
Reserves11,27811,87013,41810,59412,22414,86419,22925,204
Borrowings90,360105,327140,337122,476134,322158,502201,682251,506
Other Liabilities7,0275,7818,56311,27910,84910,56112,35312,430
Total Liabilities112,064126,382167,099149,159163,072190,146239,882296,210
Fixed Assets9337979409991,3701,4482,0542,720
CWIP633474657921995
Investments50,16460,90458,24545,17445,18245,93560,91374,500
Other Assets60,96264,677107,880102,911116,454142,684176,696218,895
Total Assets112,064126,382167,099149,159163,072190,146239,882296,210

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +14,128-5,97817,36410,96614,0422,6793,56311,543
Cash from Investing Activity +-4,918-1,027-494-3,790-2,833-2,960-11,996-9,887
Cash from Financing Activity +-6,9746,742-12,220-12,539-9,59810,2116,509-2,954
Net Cash Flow2,236-2634,649-5,3631,6109,929-1,924-1,298

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-89.00-104.00-136.00-113.00-126.00-146.00-188.00-233.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %6%-11%-17%3%1%11%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Oct 2024
Promoters36.49%36.48%36.47%36.38%39.99%39.93%39.37%37.45%37.43%37.37%35.37%0.00%
FIIs13.48%10.99%19.28%19.76%19.31%20.85%24.48%24.30%23.65%21.02%19.57%27.30%
DIIs9.58%10.19%9.83%9.61%7.69%7.71%5.58%6.63%6.79%7.93%11.73%16.19%
Government4.20%4.20%4.23%4.22%3.98%3.97%3.92%3.72%3.72%3.71%3.51%9.17%
Public36.24%38.14%30.18%30.02%29.05%27.54%26.66%27.90%28.38%29.95%29.81%47.35%
No. of Shareholders15,68,95816,39,15216,11,34116,42,93717,07,47917,37,95520,38,98823,82,67426,11,51227,63,05028,56,37732,04,143

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India ETF Nifty Bank BeES16,513,7272.01124.5113,515,9172024-11-2022.18%
HDFC Large and Mid Cap Fund - Regular Plan13,515,9170.59101.9113,515,9172024-11-200%
Motilal Oswal Large and Midcap Fund12,950,0002.6797.6413,515,9172024-11-20-4.19%
Aditya Birla Sun Life Nifty Bank ETF7,010,7772.0152.8613,515,9172024-11-20-48.13%
HDFC NIFTY Bank ETF6,201,0242.0146.7613,515,9172024-11-20-54.12%
HDFC NIFTY Private Bank ETF2,168,4184.9916.3513,515,9172024-11-20-83.96%
Motilal Oswal Nifty Midcap 150 Index Fund2,061,2271.1115.5413,515,9172024-11-20-84.75%
Nippon India ETF Nifty Midcap 1501,930,1971.1114.5513,515,9172024-11-20-85.72%
LIC MF Large & Mid Cap Fund1,721,8610.5112.9813,515,9172024-11-20-87.26%
Nippon India Nifty Midcap 150 Index Fund1,692,3801.112.7613,515,9172024-11-20-87.48%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value10.0010.0010.0010.0010.00
Basic EPS (Rs.)4.303.980.210.88-5.94
Diluted EPS (Rs.)4.233.920.210.87-5.86
Cash EPS (Rs.)4.164.410.821.45-5.25
Book Value[Excl.RevalReserv]/Share (Rs.)45.6539.0633.9131.5432.02
Book Value[Incl.RevalReserv]/Share (Rs.)45.6539.0633.9131.5432.02
Operating Revenue / Share (Rs.)42.8934.3427.6228.1333.76
Net Profit / Share (Rs.)4.163.750.210.85-5.91
Net Profit After MI / Share (Rs.)4.163.750.210.85-5.91
Net Profit Margin (%)9.7010.930.773.02-17.50
Net Profit After MI And SOA Nargin (%)9.7010.930.773.02-17.50
Operating Profit Margin (%)-9.85-8.72-17.70-11.08-28.11
Return On Assets (%)0.991.030.060.29-1.90
Return On Equity / Networth (%)9.119.610.622.69-18.45
Net Interest Margin (X)5.555.265.104.524.03
Cost To Income (%)72.1370.7874.5073.1874.53
Interest Income / Total Assets (%)10.239.479.039.7910.88
Non-Interest Income / Total Assets (%)2.001.861.661.381.15
Operating Profit / Total Assets (%)-1.00-0.82-1.59-1.08-3.06
Operating Expenses / Total Assets (%)5.455.045.044.323.86
Interest Expenses / Total Assets (%)4.684.203.925.266.85
Enterprise Value (Rs.Cr.)293817.64227532.22177491.19161267.27129276.60
EV Per Net Sales (X)9.6910.0110.3410.107.96
Price To Book Value (X)1.651.411.171.770.65
Price To Sales (X)1.761.601.441.980.62
Retention Ratios (%)100.00100.00100.00100.00100.00
Earnings Yield (X)0.050.060.010.01-0.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IDFC First Bank Ltd as of November 21, 2024 is: 93.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, IDFC First Bank Ltd is Undervalued by 48.62% compared to the current share price 62.90

Intrinsic Value of IDFC First Bank Ltd as of November 21, 2024 is: 151.20

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, IDFC First Bank Ltd is Undervalued by 140.38% compared to the current share price 62.90

Last 5 Year EPS CAGR: 61.74%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in IDFC First Bank Ltd:
    1. Net Profit Margin: 9.7%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 7.1%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 13.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.9 (Industry average Stock P/E: 14.41)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

IDFC First Bank Ltd. is a Public Limited Listed company incorporated on 21/10/2014 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65110TN2014PLC097792 and registration number is 097792. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 17172.68 Cr. and Equity Capital is Rs. 6217.71 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private SectorKRM Tower, Chennai (Madras) Tamil Nadu 600031bank.info@idfcfirstbank.com
http://www.idfcfirstbank.com
Management
NamePosition Held
Mr. Sanjeeb ChaudhuriChairman & Ind.Director
Mr. V VaidyanathanManaging Director & CEO
Mr. Mahendra Narandas ShahNon Exe.Non Ind.Director
Mr. Vishal MahadeviaNon Exe.Non Ind.Director
Dr. Jaimini BhagwatiNon Exe.Non Ind.Director
Mr. Aashish KamatIndependent Director
Ms. Matangi GowrishankarIndependent Director
Dr.(Mrs.) Brinda JagirdarIndependent Director
Mr. Pravir VohraIndependent Director
Mr. S Ganesh KumarIndependent Director

FAQ

What is the latest intrinsic value of IDFC First Bank Ltd?

The latest intrinsic value of IDFC First Bank Ltd as on 21 November 2024 is ₹93.48, which is 48.62% higher than the current market price of ₹62.90.

What is the Market Cap of IDFC First Bank Ltd?

The Market Cap of IDFC First Bank Ltd is 46,073 Cr..

What is the current Stock Price of IDFC First Bank Ltd as on 21 November 2024?

The current stock price of IDFC First Bank Ltd as on 21 November 2024 is ₹62.9.

What is the High / Low of IDFC First Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of IDFC First Bank Ltd stocks is 92.4/59.2.

What is the Stock P/E of IDFC First Bank Ltd?

The Stock P/E of IDFC First Bank Ltd is 19.9.

What is the Book Value of IDFC First Bank Ltd?

The Book Value of IDFC First Bank Ltd is 45.6.

What is the Dividend Yield of IDFC First Bank Ltd?

The Dividend Yield of IDFC First Bank Ltd is 0.00 %.

What is the ROCE of IDFC First Bank Ltd?

The ROCE of IDFC First Bank Ltd is 6.93 %.

What is the ROE of IDFC First Bank Ltd?

The ROE of IDFC First Bank Ltd is 10.1 %.

What is the Face Value of IDFC First Bank Ltd?

The Face Value of IDFC First Bank Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in IDFC First Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE