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IDFC First Bank Gets 'Buy' Upgrade From ICICI Securities — Capital Infusion, Fair Valuations To Aid Re-Rating
ICICI Securities upgrade IDFC First Bank to Buy on strong capital buffer, likely RoA revival (off low base) and inexpensive valuations, hikes target price.
21 Apr 2025, 07:36 PM IST 
IDFC First Bank's stock has de-rated in the last few months amid pressure on RoAs and asset quality. (Photo source: NDTV Profit)
IDFC First Bank's stock has de-rated in the last few months amid pressure on RoAs (down to <0.5% from >1% earlier) and asset quality. However, the brokerage believes current RoAs (~0.4% in Q3 FY25 and ~0.5% in FY25E) seem to have broadly bottomed out – benefitting from operating leverage and easing credit costs. Valuations at ~1x FY27E ABV suggest limited downside; separately, strong potential capital infusion (pro forma CET1 at ~16....
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