IDFC First Bank Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹54,797.30 crore, a PE ratio of 19.22, a debt-to-equity ratio of 7.79, and a return on equity (ROE) of 10.1%. These figures reflect the bank’s moderate financial health and its significant use of leverage.
Content:
- IDFC First Bank Limited Overview
- IDFC First Bank Financial Results
- IDFC First Bank Ltd Financial Analysis
- IDFC First Bank Limited Company Metrics
- IDFC First Bank Ltd Stock Performance
- IDFC First Bank Limited Peer Comparison
- IDFC First Bank Shareholding Pattern
- IDFC First Bank History
- How To Invest In IDFC First Bank Ltd Shares?
- IDFC First Bank Ltd Fundamental Analysis – FAQs
IDFC First Bank Limited Overview
IDFC First Bank Ltd is a growing Indian bank offering a wide range of financial services, including retail banking, wholesale banking and other financial products. The bank is recognized for its focus on customer-centric services and expanding digital banking solutions.
The company has a market capitalization of ₹54,797.30 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹101, significantly above its 52-week low of ₹70.4, indicating strong investor confidence. The all-time high of the stock is ₹101, while the all-time low is ₹17.6.
IDFC First Bank Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with total income increasing from ₹20,345 crore to ₹36,257 crore and net interest income rising from ₹9,708 crore to ₹16,455 crore. The company maintained a stable PPOP margin and improved EPS over the years.
- Revenue Trend: Total income increased from ₹20,345 crore in FY 22 to ₹27,195 crore in FY 23, and further to ₹36,257 crore in FY 24, indicating robust revenue growth during this period.
- Equity and Liabilities: The company’s equity and liabilities structure reflects financial stability and strategic management, effectively balancing equity financing and debt to ensure sustainable growth and capital flexibility for future initiatives.
- Profitability: The Pre-Provision Operating Profit (PPOP) margin slightly decreased from 18.37% in FY 23 to 17.21% in FY 24, after being at 16.14% in FY 22, indicating relatively stable operational efficiency with minor fluctuations.
- Earnings per Share (EPS): Earnings per Share (EPS) increased from ₹0.21 in FY 22 to ₹4.3 in FY 24, showing significant growth in profit per share, reflecting improved profitability for shareholders.
- Return on Net Worth (RoNW): Return on Net Worth (RoNW) demonstrated consistent improvement over the period, reflecting the company’s ability to generate returns on shareholders’ equity, although specific percentages are not provided.
- Financial Position: The company’s financial position strengthened with net interest income increasing from ₹9,708 crore in FY 22 to ₹16,455 crore in FY 24, showcasing significant improvement in financial health and management.
IDFC First Bank Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 36,257 | 27,195 | 20,345 |
| Total Expenses | 30,018 | 22,199 | 17,062 |
| Pre-Provisioning Operating Profit | 6,239 | 4,996 | 3,284 |
| PPOP Margin (%) | 17.21 | 18.37 | 16.14 |
| Provisions and Contingencies | 3,296 | 1,665 | 3,109 |
| Profit Before Tax | 2,942 | 3,331 | 174.97 |
| Tax % | — | 25.41 | 24.38 |
| Net Profit | 2,942 | 2,485 | 132.31 |
| EPS | 4.3 | 3.98 | 0.21 |
| Net Interest Income | 16,455 | 12,637 | 9,708 |
All values in ₹ Crores.
IDFC First Bank Limited Company Metrics
IDFC First Bank Ltd has a market cap of ₹54,797.30 crore, an EPS of ₹4.09, and a book value of ₹45.6 per share. With a significant debt of ₹2,51,506 crore, it shows moderate profitability and efficiency, focusing on reinvesting earnings over paying dividends.
- Market Capitalization: IDFC First Bank Ltd has a market capitalization of ₹54,797.30 crore, representing the total market value of its outstanding shares, highlighting its presence in the Indian banking sector.
- Profit Before Tax (PBT): IDFC First Bank’s Profit Before Tax (PBT) showed fluctuations, with ₹174.97 crore in FY 22, improving to ₹3,331 crore in FY 23 and slightly decreasing to ₹2,942 crore in FY 24, reflecting variable profitability over these years.
- Earnings per Share (EPS): IDFC First Bank has an EPS of ₹4.09, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the bank’s profitability for its shareholders.
- Face Value: The face value of IDFC First Bank’s shares is ₹10.00, which is the nominal value of each share as stated on the share certificate. This value is used in calculating dividends and determining the nominal value of shares.
- Asset Turnover: IDFC First Bank has an asset turnover ratio of 0.11, reflecting the bank’s efficiency in utilizing its assets to generate revenue, which is relatively low, indicating room for improvement.
- Total Debt: IDFC First Bank carries a significant debt of ₹2,51,506 crore, reflecting its financial leverage. Effective management of this debt is crucial for the bank’s long-term financial stability and growth.
- Dividend Yield: IDFC First Bank has a dividend yield of 0.00%, indicating that the bank currently does not offer dividend income to its shareholders, focusing instead on reinvesting earnings for growth.
- Book Value: IDFC First Bank has a book value of ₹45.6 per share, representing the net asset value of the bank divided by the number of outstanding shares. This value provides insight into the bank’s financial health and intrinsic worth.
IDFC First Bank Ltd Stock Performance
IDFC First Bank delivered mixed returns on investment with -20.2% over 1 year, 20.6% over 3 years, and 11.0% over 5 years, showcasing variable long-term performance and profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | -20.2 |
| 3 Years | 20.6 |
| 5 Years | 11.0 |
Example: If an investor had invested ₹1,000 in IDFC First Bank’s stock:
1 year ago, their investment would be worth ₹798.
3 years ago, their investment would have grown to ₹1,206.
5 years ago, their investment would have increased to approximately ₹1,110.
This reflects the bank’s fluctuating performance and moderate long-term returns for investors.
IDFC First Bank Limited Peer Comparison
IDFC First Bank, with a market cap of ₹54,842.16 crore and a PE ratio of 19.23, offers an ROE of 10.1%. Despite a -20.23% 1-year return, it shows potential with an EPS of ₹4.09, though it lags behind peers in profitability.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| 1 | HDFC Bank | 1622 | 1235557.39 | 18.1 | 17.14 | 89.75 | 3.48 | 7.67 | 1.2 |
| 2 | ICICI Bank | 1172.65 | 825694.07 | 18.21 | 18.8 | 64.56 | 23.89 | 7.6 | 0.86 |
| 3 | Axis Bank | 1170.95 | 362010.75 | 13.56 | 18.4 | 86.63 | 22.04 | 7.06 | 0.09 |
| 4 | Kotak Mah. Bank | 1797.85 | 357403.83 | 19.22 | 15.06 | 108.22 | 2.41 | 7.86 | 0.11 |
| 5 | IndusInd Bank | 1382 | 107625.34 | 12.02 | 15.25 | 115.41 | -1.42 | 7.93 | 1.19 |
| 6 | IDBI Bank | 96.75 | 104029.48 | 16.52 | 11.77 | 5.85 | 56.97 | 6.23 | 1.55 |
| 7 | Yes Bank | 24.59 | 77054.39 | 52.98 | 3.18 | 0.49 | 44.6 | 5.83 | 0 |
| 8 | IDFC First Bank | 73.33 | 54842.16 | 19.22 | 10.1 | 4.09 | -20.23 | 6.93 | 0 |
IDFC First Bank Shareholding Pattern
In FY 2024, IDFC First Bank’s shareholding pattern saw promoters holding 37.43%, down from 39.99% in FY 2023. FIIs increased their stake to 23.65% from 19.31%, while DIIs reduced their holdings to 6.8%. Retail and others held 32.09%, slightly down from 33.02%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 37.43 | 39.99 | 36.49 |
| FII | 23.65 | 19.31 | 13.48 |
| DII | 6.8 | 7.7 | 9.58 |
| Retail & others | 32.09 | 33.02 | 40.45 |
All values in %
IDFC First Bank History
IDFC First Bank was formed in 2018 through the merger of IDFC Bank and Capital First, creating a new entity focused on retail banking and small businesses. This merger aimed to combine IDFC Bank’s infrastructure with Capital First’s retail expertise.
The bank quickly expanded its product offerings, including savings accounts, loans, and credit cards, targeting the retail and small business segments. It also invested heavily in digital banking services, enhancing customer experience and accessibility.
Under the leadership of V. Vaidyanathan, IDFC First Bank focused on building a strong retail franchise, reducing its reliance on infrastructure lending, and improving asset quality. This strategic shift helped the bank establish a solid retail banking presence.
Today, IDFC First Bank continues to grow, with a focus on financial inclusion and customer-centric banking solutions. Its commitment to technology-driven banking and diversified portfolio positions it for continued growth in the competitive Indian banking sector.
How To Invest In IDFC First Bank Ltd Shares?
Investing in IDFC First Bank Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for IDFC First Bank Ltd shares and place your buy order.
IDFC First Bank Ltd Fundamental Analysis – FAQs
IDFC First Bank Ltd has a market cap of ₹54,797.30 crore, an EPS of ₹4.09, a PE ratio of 19.23, and significant debt of ₹2,51,506 crore. The bank’s profitability and efficiency are moderate, with a focus on growth.
IDFC First Bank Ltd has a market capitalization of ₹54,797.30 crore, representing the total market value of its outstanding shares, highlighting its significant presence in the Indian banking sector.
IDFC First Bank Limited is a prominent Indian bank formed in 2018 through the merger of IDFC Bank and Capital First, focusing on retail banking, small businesses, and digital banking solutions.
IDFC First Bank Limited is owned by a mix of institutional investors, promoters, and the public, with key stakeholders including IDFC Ltd, V. Vaidyanathan, and various institutional investors.
As of FY 2024, the main shareholders of IDFC First Bank Ltd include promoters holding 37.43%, FIIs at 23.65%, DIIs at 6.8%, and retail & others holding 32.09%.
IDFC First Bank operates in the banking and financial services industry, offering a wide range of services including retail banking, corporate banking, and financial products, with a strong focus on digital banking.
Investors can buy IDFC First Bank shares through stock exchanges by opening a trading account with a broker or via online trading platforms, participating in market transactions during trading hours.
Determining if IDFC First Bank is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 19.22, IDFC First Bank might be fairly valued based on market expectations and its growth potential.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
