NSEI:IDFCFIRSTB

Stock Analysis Report

Executive Summary

IDFC First Bank Limited provides various banking and financial products and services to corporates, individuals, multi-national companies, SMEs/entrepreneurs, financial institutions, and the government in India.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has IDFC First Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IDFCFIRSTB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

IDFCFIRSTB

-2.8%

IN Banks

-3.9%

IN Market


1 Year Return

-13.7%

IDFCFIRSTB

5.3%

IN Banks

4.5%

IN Market

Return vs Industry: IDFCFIRSTB underperformed the Indian Banks industry which returned 6.1% over the past year.

Return vs Market: IDFCFIRSTB underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

IDFCFIRSTBIndustryMarket
7 Day-4.2%-2.8%-3.9%
30 Day-10.9%-3.5%-3.9%
90 Day-17.6%-7.9%-2.1%
1 Year-13.7%-13.7%5.7%5.3%6.4%4.5%
3 Year-33.7%-35.8%10.7%9.5%19.4%12.8%
5 Yearn/a5.9%2.5%28.2%16.6%

Price Volatility Vs. Market

How volatile is IDFC First Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IDFC First Bank undervalued compared to its fair value and its price relative to the market?

1.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IDFCFIRSTB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IDFCFIRSTB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IDFCFIRSTB is unprofitable, so we can't compare its PE Ratio to the Banks industry average.

PE vs Market: IDFCFIRSTB is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IDFCFIRSTB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IDFCFIRSTB is overvalued based on its PB Ratio (1.1x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is IDFC First Bank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

84.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IDFCFIRSTB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (6.5%).

Earnings vs Market: IDFCFIRSTB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IDFCFIRSTB's is expected to become profitable in the next 3 years.

Revenue vs Market: IDFCFIRSTB's revenue (38.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: IDFCFIRSTB's revenue (38.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IDFCFIRSTB's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has IDFC First Bank performed over the past 5 years?

-62.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IDFCFIRSTB is currently unprofitable.

Growing Profit Margin: IDFCFIRSTB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IDFCFIRSTB is unprofitable, and losses have increased over the past 5 years at a rate of -62.3% per year.

Accelerating Growth: Unable to compare IDFCFIRSTB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IDFCFIRSTB is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (25.5%).


Return on Equity

High ROE: IDFCFIRSTB has a negative Return on Equity (-18.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is IDFC First Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IDFCFIRSTB has a low level of unsold assets or inventory.

Debt Coverage by Assets: IDFCFIRSTB's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IDFCFIRSTB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IDFCFIRSTB has less than a year of cash runway if free cash flow continues to reduce at historical rates of -7.9% each year


Financial Institutions Analysis

Asset Level: IDFCFIRSTB's level of assets compared to its equity is low.

Allowance for Bad Loans: IDFCFIRSTB has a low allowance for bad loans.

Low Risk Liabilities: IDFCFIRSTB's liabilities are made up of primarily higher risk sources of funding.

Loan Level: IDFCFIRSTB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IDFCFIRSTB's loans are broadly funded by customer deposits.

Level of Bad Loans: IDFCFIRSTB has a high level of bad loans (2.68%)


Next Steps

Dividend

What is IDFC First Bank's current dividend yield, its reliability and sustainability?

0.52%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IDFCFIRSTB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IDFCFIRSTB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IDFCFIRSTB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IDFCFIRSTB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: IDFCFIRSTB is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IDFCFIRSTB's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

V. Vaidyanathan (51yo)

1.2yrs

Tenure

₹16,877,828

Compensation

Mr. V. Vaidyanathan, MBA, AMP (HBS), has been the Managing Director, Chief Executive Officer and Director at IDFC First Bank Ltd. (formerly IDFC Bank Ltd.) since December 19, 2018. Mr. Vaidyanathan has bee ...


CEO Compensation Analysis

Compensation vs Market: V.'s total compensation ($USD235.79K) is below average for companies of similar size in the Indian market ($USD737.92K).

Compensation vs Earnings: Insufficient data to compare V.'s compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
V. Vaidyanathan
MD, CEO & Director1.2yrs₹16.88m1.04% 1.9b
Satish Gaikwad
Head of Legal & Company Secretary1.2yrs₹6.28m0.0057% 10.6m
Pankaj Sanklecha
Chief Risk Officer0.2yrs₹16.73m0.10% 194.5m
Kamalakar Nayak
Chief Compliance Officer0yrsno data0.00073% 1.4m
Adrian Andrade
Chief Human Resources Officer and Head of Communications & Human Resources0yrsno datano data
Niddodi Rajan
Group CHRO & Group CMO3.8yrsno datano data
Ajay Mahajan
Head of Wholesale Banking2.7yrsno data0.0088% 16.4m
Ravi Prasad
Head of Bharat Banking0yrsno datano data
Amit Kumar
Head of Retail Liabilities0yrsno datano data
Pradeep Natarajan
Head of Retail Assets0yrsno datano data

1.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: IDFCFIRSTB's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
V. Vaidyanathan
MD, CEO & Director1.2yrs₹16.88m1.04% 1.9b
Vishal Mahadevia
Non-Executive Non-Independent Director1.2yrsno datano data
Rajiv Lall
Part-Time Non-Executive Chairman1.2yrs₹41.48m0.055% 102.2m
Hemang Raja
Independent Director1.2yrs₹950.00kno data
Pravir Vohra
Independent Director1.5yrs₹650.00k0.011% 19.7m
Sunil Kakar
Non-Executive Non-Independent Director2.6yrsno data0.00042% 783.6k
Anand Sinha
Independent Director3.5yrs₹2.75mno data
Aashish Kamat
Independent Director1.2yrs₹350.00kno data
Brinda Jagirdar
Independent Director1.2yrs₹600.00kno data
Anindita Sinharay
Non-Executive Non-Independent Director3yrsno datano data

1.2yrs

Average Tenure

61yo

Average Age

Experienced Board: IDFCFIRSTB's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IDFCFIRSTB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22%.


Top Shareholders

Company Information

IDFC First Bank Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IDFC First Bank Limited
  • Ticker: IDFCFIRSTB
  • Exchange: NSEI
  • Founded: 2014
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹186.567b
  • Shares outstanding: 4.79b
  • Website: https://www.idfcfirstbank.com

Number of Employees


Location

  • IDFC First Bank Limited
  • Naman Chambers
  • C-32, G-Block
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539437BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2015
IDFCFIRSTBNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2015

Biography

IDFC First Bank Limited provides various banking and financial products and services to corporates, individuals, multi-national companies, SMEs/entrepreneurs, financial institutions, and the government in India. It operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business. The company offers savings accounts, corporate salary accounts, and current accounts; fixed, recurring, and travel deposits; debit and prepaid cards; and payment services. It also provides personal, consumer durable, home, car, two wheeler, commercial vehicle, equipment hypothecation, business, working capital, business, and micro enterprise loans, as well as loan against property and loan for women; investment services covering mutual funds, gold bonds, and investment linked insurance solutions; term, health, motor, home, investment linked, and travel insurance; and mobile and Internet banking services. In addition, the company offers cash management and forex services; wholesale banking services, such as investment banking services; and investment management solutions. As of March 31, 2019, it operated 242 branches, 141 ATMs, 102 asset branches, 354 rural financing branches, and 100 business correspondence centers. The company was formerly known as IDFC Bank Limited and changed its name to IDFC First Bank Limited in January 2019. The company was incorporated in 2014 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:29
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.