IDFC First Bank Downgraded to 'Sell' by MarketsMOJO, Technical Factors Indicate Bearish Trend

IDFC First Bank, a largecap private bank, has recently been downgraded to a 'Sell' by MarketsMOJO on July 24, 2024. This decision was based on several factors, including the bank's flat results in March 2024, with the lowest credit deposit ratio of 97.02% and PBDIT of Rs 21.91 crore. Additionally, the operating profit to net sales ratio was also at its lowest at 0.27%.
Technically, the stock is currently in a bearish range and has been generating negative returns since the downgrade. The MACD and Bollinger Band technical factors also indicate a bearish trend for the stock.

In the long term, IDFC First Bank has underperformed the BSE 500 index, with a negative return of -9.59% in the last year. However, the bank has strong lending practices with a low gross NPA ratio of 2.51%. It also has a strong long-term fundamental strength, with a 35.17% CAGR growth in net profits.

The bank has shown healthy long-term growth, with an annual growth rate of 40.84% in net interest income and 35.17% in net profit. Its ROA of 1 and attractive valuation with a 1.7 price to book value make it an attractive investment option. The stock is currently trading at a discount compared to its historical valuations.

Moreover, IDFC First Bank has a high institutional holding of 34.18%, indicating that these investors have better resources and capabilities to analyze the bank's fundamentals. Overall, while the stock has shown a negative return in the past year, its profits have increased by 21.3%, with a PEG ratio of 1.4.