Midcap Stock Below Rs 90 Attractive For Buying: PL Likes This Private Bank, 10% Upside In Near Term

IDFC First Bank, a Mumbai-based lender is among the cheapest and most attractive private bank stocks to buy in midcap basket. In the trading week from December 4-8, IDFC First shares rose by 2%, while year-to-date, the stock has zoomed by more than 44% on BSE. Prabhudas Lilladher's technical analyst has suggested positional buying in this stock for a target price of Rs 97.

On Friday, IDFC First shares ended at Rs 88.07 apiece, up by 0.43% on BSE with m-cap of Rs 62,191.02 crore.

Earlier this week, Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock after the decent correction has indicated a pullback to improve the bias and with a higher low formation pattern on the daily chart has shown strength anticipating for further rise in the coming days."

Also, Koothupalakkal said, there is a descending channel breakout indication to strengthen the bias and can expect further upward move.

Furthermore, the analyst said, "The RSI indicator is on the rise and is well placed to signal a buy having much upside potential from current levels. With the chart looking attractive, we recommend a positional buy in this stock for an upside target of 97 keeping a stop loss of 83."

From the current market price and PL's target price, it can be said that IDFC First Bank has an upside potential of over 10% in the medium term.

IDFC First Bank posted a net profit of Rs 751 crore in the quarter ending September 30, 2023, period, registering a growth of a whopping 35% from Rs 556 crore in Q2 of the previous fiscal. Net interest income (NII) also jumped by 32% to Rs 3,950 crore in Q2FY24, as against Rs 3,002 crore a year ago same quarter. Net interest income is the difference between interest earned and expended. Additionally, the bank's net interest margin (NIM) of the bank stood at 6.32% in Q2-FY24 as compared to 5.83% in Q2-FY23 and 6.33% in Q1-FY24.

In terms of asset quality, gross NPA stood at 2.11% as of 30 September 2023 from 3.18% on 30 September 2022. The net NPA (NNPA) of the bank has improved to 0.68% as of 30 September 2023 from 1.09% on 30 September 2022.

IDFC FIRST Bank's vision is to build a world-class bank in India that's guided by ethics, powered by technology, and a force for social good. IDFC FIRST is a new-age bank that works in the best interest of its customers. IDFC FIRST Bank is the first bank to offer monthly credit in savings accounts, so customers can earn more. The bank's credit cards have unique features such as lifetime free, never-expiring rewards points, zero interest on cash withdrawal at ATMs and low APR, so customers incur less fees on its Credit Cards.