IDFC Share Price Target Rs 145: July 16 - Record Date For Upcoming Dividend; Buy?

IDFC is one of the top finance companies in India, offering financial services, investment banking, infrastructure development, and financing. The large-cap firm IDFC Ltd, which has a market capitalization of Rs 19,399.81 Cr, will be the focus of attention in the upcoming session. The stock has declared a dividend, with a record date of July 16, 2024. Following this, VLA Ambala, a research analyst registered with SEBI, is bullish on the stock with a target price of Rs 127.40 and Rs 145.

IDFC Dividend 2024

"We wish to inform you that the Board of the Directors of the IDFC Limited ('IDFC' or 'the Company') at its meeting held today i.e. July 04, 2024 has considered and declared an Interim Dividend of 10% i.e. Rs. 1.00/- per equity share of the Company. Please note that the Interim Dividend, shall be payable to all those equity shareholders, whose names appear in the Register of Members of the Company as at close of day on July 16, 2024, being the record date for the purpose of the aforesaid Interim Dividend. Please note that Interim Dividend will be paid to eligible shareholders on or after July 23, 2024," said IDFC Ltd in a stock exchange filing.

IDFC Financials

For the quarter that ended on March 31, 2024, IDFC's overall revenue from operations dropped by approximately 81% to Rs 9.7 crore from Rs 52.6 crore during the same period of FY23. Compared to Rs 154.24 crore in FY23, IDFC's total revenue for FY24 decreased by approximately 57% to Rs 65.54 crore. Compared to Rs 3,387.41 crore in the same period of the previous fiscal year, IDFC's net profit for the fourth quarter of FY24 dropped by almost 90% to Rs 347.85 crore. Compared to the same period last year, when the net profit was Rs 4,243.93 crore, it decreased by more than 75% to Rs 1,045.58 crore in FY24.

IDFC Share Price Target

"According to VLA Ambala, a SEBI-registered research analyst and founder of SMT Stock Market Today, IDFC Limited is a well-known player in financing infrastructure projects across sectors such as energy, telecom, and transportation, along with specializing in asset management and institutional broking. Currently, the stock trades within a 52-week range of Rs 105 to Rs 137 and has a market capitalization of Rs 19,400 crore. The company's financial metrics include a P/E ratio of 18.55, a sector P/E of 14.23, a P/B ratio of 1.45, and a return on equity (ROE) of 36.59%," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

"In the most recent quarterly results for Q1-24, IDFC reported sales of Rs 9.77 crore, showing a YoY decrease of 81.43% but a QoQ increase of 227%. The operating profit stood at Rs 7.15 crore, up 85.23% YoY and 156% QoQ. IDFC reported a net profit of Rs 347 crore, reflecting an 89.73% YoY decrease but a 65.61% quarter-on-quarter increase. The company's shareholding pattern includes FII - 20.99%, DII - 12.34%, and retail investors holding a 16.24% stake in the company. Considering its current market price and valuation, VLA Ambala, SEBI-registered research analyst, recommends buying IDFC stock within the range of Rs 120 to Rs 122, with target prices set between Rs 127.40 and Rs 145. A stop loss at Rs 116 is advised to manage potential risks," she further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.