Now Reading: Motilal Oswal upgrades IDFC First Bank to Buy, sets Rs 105 target
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Motilal Oswal upgrades IDFC First Bank to Buy, sets Rs 105 target
Motilal Oswal upgrades IDFC First Bank to Buy, sets Rs 105 target
Motilal Oswal has upgraded IDFC First Bank to 'Buy' from 'Neutral', setting a target price of Rs 105 apiece. The brokerage expects the stock to rally about 23% from its last closing…
Motilal Oswal has upgraded IDFC First Bank to 'Buy' from 'Neutral', setting a target price of Rs 105 apiece. The brokerage expects the stock to rally about 23% from its last closing price of Rs 85, citing the bank's stronger deposit franchise, sustained loan growth, improving operating leverage and controlled credit costs. The bank's retail deposits now account for 80% of customer deposits, and its CASA ratio stands at 51%.
The brokerage estimates the loan book will grow at around 21% CAGR over FY26-FY28E, crossing Rs 3.4 lakh crore by FY27. Motilal Oswal expects the bank's FCNR(B) deposit mobilisation of $3.57 billion to boost FY27 earnings by 4.1-6.8%, though it may compress net interest margins by 7-12 basis points. The upgrade is based on 1.6x FY28E adjusted book value.
Indian Opinion Analysis
All five sources report Motilal Oswal's IDFC First Bank upgrade with near identical facts and language, offering no divergent framings. NDTV Profit leads on the 23% rally potential, while Livemint and ET BFSI add deeper broker commentary on deposit and loan specifics. The uniform straight coverage means the story is a straightforward brokerage call, the balanced reading is that the upgrade hinges on the bank delivering the projected 21% loan CAGR and deposit growth. The bank's FY27 earnings and NIM trajectory from the FCNR(B) deployment will determine if the Rs 105 target is met.
Coverage: 5 sources, 5 neutral
Sources (5): ndtvprofit.com (neutral report), ndtvprofit.com (2) (neutral report), ndtvprofit.com (3) (neutral report), livemint.com (neutral report), bfsi.economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 5 sources linked above, so one read covers every framing they carry.
Updated: this story now draws on 5 sources.
