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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

IDFC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:09 am

Market Cap 17,275 Cr.
Current Price 108
High / Low130/104
Stock P/E19.9
Book Value 83.6
Dividend Yield0.93 %
ROCE8.49 %
ROE8.37 %
Face Value 10.0
PEG Ratio0.20

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

View Share Price Target for IDFC Ltd

Competitors of IDFC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of IDFC Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8710421329542224930532737
Expenses2322805845653668344976
Operating Profit-145-176-37-4532418-414472541931
OPM %-167%-170%-177%-16,431%81%33%-163%65%94%85%7%72%84%
Other Income527846246362152452972493,754256200
Interest5410000000070
Depreciation-12501000000000
Profit before tax-133-18239-409269542112603432753,758268230
Tax %-10%-13%-7%-0%3%67%8%3%3%1%10%1%3%
Net Profit-147-20642-410263181942523322723,387264224
EPS in Rs-0.91-1.290.26-2.571.640.111.221.582.081.7021.171.651.40

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,4208,1458,7789,7208,96810,4006283563423488154108
Expenses7688441,1411,7771,4901,8065171,2001,274503256467
Operating Profit5,6537,3017,6377,9437,4788,594112-844-932-469649141
OPM %88%90%87%82%83%83%18%-237%-273%-1,364%72%59%38%
Other Income15312-0-2,640-3984-10731171614,5454,427
Interest3,4564,6765,0555,6585,7366,65016310007
Depreciation383431-61621491314323000
Profit before tax2,1732,5942,5632,346-9591,7911,082-970-936-3111254,6354,461
Tax %29%29%29%25%38%27%18%15%-6%-8%48%8%
Net Profit1,5531,8441,8261,728-6571,240885-822-996-337644,2444,085
EPS in Rs10.2812.1211.8910.72-5.864.385.44-5.26-6.23-2.100.4026.5225.53
Dividend Payout %22%21%22%24%0%6%14%0%-51%0%249%45%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)18.74%-0.98%-5.37%-138.02%288.74%-28.63%-192.88%-21.17%66.16%118.99%6531.25%
Change in YoY Net Profit Growth (%)0.00%-19.71%-4.39%-132.65%426.76%-317.37%-164.25%171.71%87.33%52.83%6412.26%

IDFC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-39%
5 Years:-29%
3 Years:24%
TTM:-68%
Compounded Profit Growth
10 Years:-5%
5 Years:31%
3 Years:62%
TTM:21%
Stock Price CAGR
10 Years:4%
5 Years:26%
3 Years:23%
1 Year:-7%
Return on Equity
10 Years:1%
5 Years:-6%
3 Years:-5%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1,5151,5161,5931,5941,5961,5961,5961,5961,5961,5961,6001,600
Reserves12,16813,52415,6848,5159,2249,6808,7886,7246,6197,3309,99711,781
Borrowings54,22756,56566,25265,74992,1533,544-04738-0-0-0
Other Liabilities3,1463,5543,53410,99414,6507671732001102378948
Total Liabilities71,05675,15987,06286,851117,62315,58710,5588,5688,3629,16411,68613,429
Fixed Assets1,3021,2851,3701,7252,2021,270885918834000
CWIP-01142960-0-0-0-0-0-0
Investments11,00411,30929,97530,70351,6879,3798,6736,6817,3867,70211,22112,964
Other Assets58,75062,56555,70354,39463,7284,9371,0009691431,461466464
Total Assets71,05675,15987,06286,851117,62315,58710,5588,5688,3629,16411,68613,429

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-5,498-1,4867,5242,994-3,806-7613,418-1,206-102434,128860
Cash from Investing Activity +-2,006184-17,6288,640-20,361-7131542,386-509204-2,356-906
Cash from Financing Activity +7,5891,43210,010-8,89126,3821,183-3,729-652-25-3-1,9000
Net Cash Flow85130-942,7432,215-291-157528-636244-129-47

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.00-47.00-49.00-59.00-58.00-84.00109.00-844.00-979.00-507.0064.0091.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days727212131419135000
Inventory Days
Days Payable
Cash Conversion Cycle727212131419135000
Working Capital Days-331-58-285-28288-11059153-3713,945841,186
ROCE %11%11%10%9%9%2%-5%-10%-5%0%-24%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
FIIs24.27%23.31%21.34%20.58%21.22%21.45%20.42%21.75%20.03%19.54%20.99%20.82%
DIIs6.19%7.08%11.84%12.49%16.86%17.38%20.48%20.67%15.64%14.77%13.68%14.57%
Government16.37%16.37%16.37%16.37%16.48%16.46%16.45%16.45%16.45%16.45%16.45%16.45%
Public53.17%53.24%50.45%50.55%45.44%44.72%42.65%41.13%47.86%49.23%48.87%48.15%
No. of Shareholders4,42,4104,56,8374,44,3854,56,4084,34,8814,40,1694,61,9684,52,8425,80,4056,40,5536,73,9156,78,676

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan51,071,5442.52584.773,890,0002024-11-231212.89%
Nippon India Arbitrage Fund8,410,0000.8596.293,890,0002024-11-23116.2%
Kotak Balanced Advantage Fund8,070,0000.6392.43,890,0002024-11-23107.46%
SBI Arbitrage Opportunities Fund6,840,0000.3578.323,890,0002024-11-2375.84%
Tata Hybrid Equity Fund - Regular Plan6,800,0002.3577.863,890,0002024-11-2374.81%
ICICI Prudential Equity - Arbitrage Fund6,290,0000.4772.023,890,0002024-11-2361.7%
Aditya Birla Sun Life Flexi Cap Fund6,085,5200.4169.683,890,0002024-11-2356.44%
Kotak Equity Savings Fund - Regular Plan4,500,0001.5751.533,890,0002024-11-2315.68%
Aditya Birla Sun Life Banking And Financial Services Fund4,279,8001.76493,890,0002024-11-2310.02%
DSP Arbitrage Fund3,890,0001.744.543,890,0002024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.5326.560.40-2.11-6.24
Diluted EPS (Rs.)6.5326.560.40-2.11-6.24
Cash EPS (Rs.)0.2020.440.370.940.24
Book Value[Excl.RevalReserv]/Share (Rs.)83.6372.4855.9151.4652.12
Book Value[Incl.RevalReserv]/Share (Rs.)83.6372.4855.9151.4652.12
Revenue From Operations / Share (Rs.)0.400.960.552.552.13
PBDIT / Share (Rs.)0.290.560.351.460.76
PBIT / Share (Rs.)0.290.560.321.340.56
PBT / Share (Rs.)0.250.560.321.250.55
Net Profit / Share (Rs.)0.2020.440.350.810.05
NP After MI And SOA / Share (Rs.)6.5326.520.40-2.10-6.23
PBDIT Margin (%)72.7058.9263.7757.4235.95
PBIT Margin (%)72.6458.8759.7352.4426.68
PBT Margin (%)61.5558.8759.1949.2425.92
Net Profit Margin (%)49.422125.5664.7431.962.44
NP After MI And SOA Margin (%)1595.332758.8172.72-82.57-291.99
Return on Networth / Equity (%)7.8136.590.71-4.09-11.95
Return on Capital Employeed (%)0.350.770.582.571.08
Return On Assets (%)7.7836.310.69-4.01-11.61
Asset Turnover Ratio (%)0.010.010.010.000.01
Current Ratio (X)1374.24253.7341.9481.1645.28
Quick Ratio (X)1374.24253.7341.9481.1645.28
Dividend Payout Ratio (NP) (%)0.0038.430.000.00-50.54
Dividend Payout Ratio (CP) (%)0.0038.420.000.00-52.19
Earning Retention Ratio (%)0.0061.570.000.00150.54
Cash Earning Retention Ratio (%)0.0061.580.000.00152.19
Interest Coverage Ratio (X)6.550.00116.9817.9247.48
Interest Coverage Ratio (Post Tax) (X)5.460.00-16.4610.9511.83
Enterprise Value (Cr.)17462.5212182.469546.057485.291646.59
EV / Net Operating Revenue (X)266.4479.19108.4218.394.83
EV / EBITDA (X)366.47134.40170.0132.0313.44
MarketCap / Net Operating Revenue (X)270.1281.65111.6918.566.96
Retention Ratios (%)0.0061.560.000.00150.54
Price / BV (X)1.321.081.100.910.28
Price / Net Operating Revenue (X)270.5481.69111.8018.566.96
EarningsYield0.050.330.01-0.04-0.41

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IDFC Ltd as of November 24, 2024 is: 140.54

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 24, 2024, IDFC Ltd is Undervalued by 30.13% compared to the current share price 108.00

Intrinsic Value of IDFC Ltd as of November 24, 2024 is: 282.40

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 24, 2024, IDFC Ltd is Undervalued by 161.48% compared to the current share price 108.00

Last 5 Year EPS CAGR: 100.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.61 and average Dividend Yield of 54.07%.
  2. The stock has a low average Working Capital Days of -13.58, which is a positive sign.
  1. The stock has a low average ROCE of 1.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 18.33, which may not be favorable.
  3. The company has higher borrowings (28,214.58) compared to reserves (10,002.83), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (135.31) and profit (-233.31).

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 Ltd:
    1. Net Profit Margin: 49.42%
      • 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: 0.35% (Industry Average ROCE: 0.59%)
      • 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%: 7.81% (Industry Average ROE: 0.49%)
      • 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): 5.46
      • 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: 1374.24
      • 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: 0)
      • 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 Ltd. is a Public Limited Listed company incorporated on 30/01/1997 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L65191TN1997PLC037415 and registration number is 037415. Currently company belongs to the Industry of Finance - Term Lending Institutions. Company’s Total Operating Revenue is Rs. 54.68 Cr. and Equity Capital is Rs. 1596.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Holding Company4th Floor, Capital Tower, Chennai (Madras) Tamil Nadu 600018info@idfclimited.com
http://www.idfclimited.com
Management
NamePosition Held
Mr. Anil SinghviChairman(NonExe.&Ind.Director)
Mr. Mahendra N ShahManaging Director
Mr. Bipin GemaniWholeTime Director & CFO
Mr. Ajay SondhiIndependent Director
Dr. Jaimini BhagwatiIndependent Director
Ms. Anita BelaniIndependent Director

FAQ

What is the latest intrinsic value of IDFC Ltd?

The latest intrinsic value of IDFC Ltd as on 14 November 2024 is ₹140.54, which is 30.13% higher than the current market price of ₹108.00.

What is the Market Cap of IDFC Ltd?

The Market Cap of IDFC Ltd is 17,275 Cr..

What is the current Stock Price of IDFC Ltd as on 14 November 2024?

The current stock price of IDFC Ltd as on 14 November 2024 is ₹108.

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

In FY 2024, the High / Low of IDFC Ltd stocks is 130/104.

What is the Stock P/E of IDFC Ltd?

The Stock P/E of IDFC Ltd is 19.9.

What is the Book Value of IDFC Ltd?

The Book Value of IDFC Ltd is 83.6.

What is the Dividend Yield of IDFC Ltd?

The Dividend Yield of IDFC Ltd is 0.93 %.

What is the ROCE of IDFC Ltd?

The ROCE of IDFC Ltd is 8.49 %.

What is the ROE of IDFC Ltd?

The ROE of IDFC Ltd is 8.37 %.

What is the Face Value of IDFC Ltd?

The Face Value of IDFC 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 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