IDFC First Bank downgraded to 'Sell' by MarketsMOJO, but strong fundamentals make it a good long-term investment.

IDFC First Bank, a largecap private bank, has recently been downgraded to 'Sell' by MarketsMOJO. The technical trend for the stock has turned bearish since March 21, 2024, with a decline of 1.91% since then. This is due to multiple factors such as MACD, Bollinger Band, and KST showing bearish signals.
However, the company has strong lending practices with a low Gross NPA ratio of 2.51%. It also has a strong long-term fundamental strength with a 27.10% CAGR growth in net profits. The company has consistently shown positive results for the last 10 quarters, with the lowest Gross NPA of 2.04%, highest NII of Rs 4,286.57 crore, and a PAT of Rs 1,467.00 crore with a growth rate of 26.45%.

With a ROA of 1.1, the stock is currently trading at a fair value with a 2 Price to Book Value. It is also trading at a fair value compared to its historical valuations. Despite a 39.65% return in the past year, the company's profits have risen by 53.5%, resulting in a low PEG ratio of 0.5.

Moreover, the stock has high institutional holdings at 34.66%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors. Overall, while the technical trend may be bearish, IDFC First Bank has strong fundamentals and a fair valuation, making it a good investment option for long-term investors.