This is a stock which, typically before the Budget, always see’s a major jump in its share price. And this time too, IDFC did not disappoint. It has been on the surge since the Budget which, as usual, gave immense fillip to infrastructure development.
The company is on a sound footing. Its performance for 9MFY10 indicates that the slowdown which it has witnessed in FY09 is now left far behind. Net Interest Income (NII) increased by 20% on YoY of which NII from infrastructure loans increased by 30% while NII from treasury operations decreased by 36%. Non interest income saw a huge 50% jumo and this was mainly on the back of its asset management business which saw an increase of 1.67 times over last fiscal.
PBT rose 30% and PAT was up 32% at Rs.834 crore. Its balance sheet size grew by 4% to Rs.31,207 crore as at December 31, 2009. Net Loan book increased by 12% and its total exposure at the end of 9M was at Rs.34,757 crore. Net NPAs was placed at 0.19% of outstanding loans and interestingly, no new NPA was seen during 9M FY 2010. Net worth stood at Rs.7,010 crore.
It major exposure is to energy sector at 40%, followed by transportation, telecom, industrial and tourism, strictly in that order. Analysis of its borrowing pattern shows that 10% is from forex loans while the lions chunk, 56% is through bonds and debentures.
As at 31st Dec 2009, Govt of India held 20.2%, FIIs/FDIs held 44.9%, FIs and insurance companies held 16.3%, Mutual funds held 5.8%, Bodies Corporate held 3.8% and only 9.5% is with the retail investor.
IDFC is a very good long term wealth creator. At every dip, accumulate this stock.
The company is on a sound footing. Its performance for 9MFY10 indicates that the slowdown which it has witnessed in FY09 is now left far behind. Net Interest Income (NII) increased by 20% on YoY of which NII from infrastructure loans increased by 30% while NII from treasury operations decreased by 36%. Non interest income saw a huge 50% jumo and this was mainly on the back of its asset management business which saw an increase of 1.67 times over last fiscal.
PBT rose 30% and PAT was up 32% at Rs.834 crore. Its balance sheet size grew by 4% to Rs.31,207 crore as at December 31, 2009. Net Loan book increased by 12% and its total exposure at the end of 9M was at Rs.34,757 crore. Net NPAs was placed at 0.19% of outstanding loans and interestingly, no new NPA was seen during 9M FY 2010. Net worth stood at Rs.7,010 crore.
It major exposure is to energy sector at 40%, followed by transportation, telecom, industrial and tourism, strictly in that order. Analysis of its borrowing pattern shows that 10% is from forex loans while the lions chunk, 56% is through bonds and debentures.
As at 31st Dec 2009, Govt of India held 20.2%, FIIs/FDIs held 44.9%, FIs and insurance companies held 16.3%, Mutual funds held 5.8%, Bodies Corporate held 3.8% and only 9.5% is with the retail investor.
IDFC is a very good long term wealth creator. At every dip, accumulate this stock.
Source: Internet (premiuminvestments.in by S P Tulsian)
