BSE:532659

Stock Analysis Report

Executive Summary

IDFC Limited, through its subsidiaries, operates as a non-banking financial company in India.

Snowflake

Fundamentals

Second-rate dividend payer and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

532659

-0.6%

IN Diversified Financial

1.4%

IN Market


1 Year Return

-14.7%

532659

-0.7%

IN Diversified Financial

2.3%

IN Market

Return vs Industry: 532659 underperformed the Indian Diversified Financial industry which returned -0.7% over the past year.

Return vs Market: 532659 underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

532659IndustryMarket
7 Day3.2%-0.6%1.4%
30 Day-6.0%-8.6%2.7%
90 Day-8.5%-13.7%-1.4%
1 Year-8.8%-14.7%1.4%-0.7%4.3%2.3%
3 Year-49.3%-53.5%0.9%-7.4%20.9%14.9%
5 Year-57.4%-78.0%17.1%-9.0%41.2%28.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 532659's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 532659's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532659 is unprofitable, so we can't compare its PE Ratio to the Diversified Financial industry average.

PE vs Market: 532659 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 532659's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532659 is good value based on its PB Ratio (0.5x) compared to the IN Diversified Financial industry average (0.5x).


Next Steps

Future Growth

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

5.6%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IDFC has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has IDFC performed over the past 5 years?

-31.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532659 is unprofitable, and losses have increased over the past 5 years at a rate of -31.3% per year.

Accelerating Growth: Unable to compare 532659's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532659 is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (13.1%).


Return on Equity

High ROE: 532659 has a negative Return on Equity (-5.45%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 532659 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 532659 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is IDFC'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: 532659 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532659's debt is covered by short term assets (assets are 19973.500000x debt).


Financial Institutions Analysis

Asset Level: 532659's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 532659 has a sufficient allowance for bad loans.

Low Risk Liabilities: 532659 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 532659 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 532659 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 532659 has an appropriate level of bad loans.


Next Steps

Dividend

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

7.79%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%0.6%markettop25%2.5%industryaverage3.4%forecastin3Years10.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 532659's dividend (7.79%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 532659's dividend (7.79%) is in the top 25% of dividend payers in the Indian market (2.51%)

Stable Dividend: 532659's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532659's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 532659 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of IDFC's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Sunil Kakar (62yo)

2.3yrs

Tenure

₹29,250,185

Compensation

Mr. Sunil Kakar has been the Chief Executive Officer, Managing Director and Director of IDFC Limited since July 16, 2017. Mr. Kakar served as the Chief Financial Officer of IDFC First Bank Ltd. (formerly I ...


CEO Compensation Analysis

Compensation vs. Market: Sunil has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Sunil's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 532659's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 532659's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹3,597,43117 Jun 19
Sunil Kakar
EntityIndividual
Role
Chief Executive Officer
MD & CEO
Shares100,000
Max Price₹35.97

Ownership Breakdown


Management Team

  • Mahendra Shah

    Co. Secretary

    • Tenure: 0yrs
    • Compensation: ₹6.76m
  • Sunil Kakar (62yo)

    MD & CEO

    • Tenure: 2.3yrs
    • Compensation: ₹29.25m
  • Suyash Choudhary (40yo)

    Head of Fixed Income

    • Tenure: 7yrs
  • Vinayak Mavinkurve (48yo)

    Group Head of Project Finance

    • Tenure: 0yrs
    • Compensation: ₹2.06m
  • Rajeev Uberoi (62yo)

    Group Head of Legal & Compliance and General Counsel

    • Tenure: 10.8yrs
  • Animesh Kumar (50yo)

    Group Head of Human Resources & Corporate Services and Co-Chief Executive Officer of IDFC Foundation

    • Tenure: 7.5yrs
  • Vivek Bajpeyi

    Deputy Chief Risk Officer

    • Tenure: 6.6yrs
  • Avtar Monga (59yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Bimal Giri (41yo)

    Senior Director of Strategy

    • Tenure: 0yrs
    • Compensation: ₹1.77m
  • Bipin Gemani

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: ₹13.89m

Board Members

  • Deepak Parekh (75yo)

    Chairman of Advisory Council

    • Tenure: 0yrs
    • Compensation: ₹306.25k
  • Vinod Rai (71yo)

    Non-Executive Independent Chairman

    • Tenure: 4yrs
    • Compensation: ₹2.98m
  • Ritu Anand (66yo)

    Additional Independent Director

    • Tenure: 0.2yrs
  • Sunil Kakar (62yo)

    MD & CEO

    • Tenure: 2.3yrs
    • Compensation: ₹29.25m
  • Naval Kumar (53yo)

    Vice Chairman of IDFC AMC Ltd

    • Tenure: 0yrs
  • R. Chandrashekhar

    Member of Advisory Council

    • Tenure: 0yrs
  • Jaimini Bhagwati

    Member of Advisory Council

    • Tenure: 0yrs
  • Anshuman Sharma (40yo)

    Additional Director

    • Tenure: 1.2yrs
  • Soumyajit Ghosh (45yo)

    Government Nominee Director

    • Tenure: 2.8yrs

Company Information

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


Key Information

  • Name: IDFC Limited
  • Ticker: 532659
  • Exchange: BSE
  • Founded: 1997
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: ₹50.046b
  • Shares outstanding: 1.60b
  • Website: https://www.idfc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532659BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2005
IDFCNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2005

Biography

IDFC Limited, through its subsidiaries, operates as a non-banking financial company in India. It offers savings accounts and time deposits; loans; investment banking services; and institutional broking and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.