IDFC First Bank: A Strong and Stable Choice for Long-Term Investors

IDFC First Bank has recently caught the attention of investors as MarketsMOJO has upgraded its stock call to 'Hold'. The private bank, which falls under the largecap category, has shown strong lending practices with a low Gross NPA ratio of 2.51%. This has contributed to its strong long-term fundamental strength, with a 27.10% CAGR growth in net profits.
In addition, the bank has also displayed healthy long-term growth, with its Net Interest Income (ex other income) growing at an annual rate of 46.05% and net profit at 27.10%. This positive trend is reflected in the company's results for the last 10 consecutive quarters, with its Gross NPA(Q) at its lowest at 2.04%, NII(Q) at its highest at Rs 4,286.57 cr, and PAT(HY) at Rs 1,467.00 cr, growing at 26.45%.

With a ROA of 1.1, IDFC First Bank is currently fairly valued with a 2 Price to Book Value. However, the stock is trading at a premium compared to its average historical valuations. Despite this, the company has generated a return of 43.56% in the past year, with its profits rising by 53.5%. This is reflected in its PEG ratio of 0.5.

The stock also has high institutional holdings at 34.66%, indicating that these investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors. However, the stock is currently in a mildly bearish range, with multiple factors such as MACD, Bollinger Band, and KST pointing towards a bearish trend.

Overall, IDFC First Bank is showing promising signs of growth and stability, making it a 'Hold' for investors. Its strong lending practices and positive financial results make it a reliable choice for those looking for a long-term investment in the private banking industry.