IDFC First Bank shares will be in focus after Morgan Stanley maintained an ‘Equal-weight’ rating on the stock, with a target price of Rs 65 per share.
According to Morgan Stanley, microfinance (MFI) exposure weighed on the bank’s earnings performance. However, the brokerage highlighted that collection efficiency improved in March and April. Growth and asset quality trends outside of the MFI segment remained steady.
Morgan Stanley expects the bank’s return on assets (RoA) to improve from 0.4% in FY25 to 1.1% in FY27. The stock valuation, at 1.1 times FY27 book value and 110-111% return on equity (RoE) in FY27, is considered largely priced in.
The current market price of IDFC First Bank stands at Rs 65.99 per share.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.
