IDFC CMP: Rs 124.50
Recommendation: Buy
Target Price: Rs 155
Prabhudas Lilladher has reiterated it's out performer rating on IDFC with a priced target of Rs 155 based on a sum-of-the-parts valuation. "IDFC is emerging as one of the key beneficiaries of the infrastructure financing opportunity in the country with exposure to some of the high-growth sectors such as energy, transportation, telecom and IT," the Prabhudas Lilladher note to clients said.
"Along with robust growth in lending business, the asset management business currently manages a corpus of $650 million and is expected to grow four times over FY07-09E to $3 billion post the deal with Citigroup, Blackstone and IIFC. IDFC recently raised Rs 21 billion (Rs 2,100 crore) through a QIP, reducing the leverage to a comfortable level of 2.95 times, leading to an increase in lending capability to a single borrower as well lot of room for expansion going ahead," the note added
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