Another merger in focus! IDFC First Bank shares climb 2%; IDFC hits fresh one-year high. Analyst views
IDFC First Bank share price: Private lender IDFC First today said its loans and advances grew from Rs 1,37,663 crore, as of June 30, 2022, to Rs 1,71,420 crore, as of June 30, 2023, YoY growth of 24.50 per cent. The QoQ growth was 6.70 per cent
- Jul 5, 2023,
- Updated Jul 5, 2023 6:32 PM IST
Shares of IDFC First Bank rose on Wednesday after the private lender said its advances grew by 24.50 per cent on a year-on-year (YoY) basis and 6.70 per cent sequentially (quarter-on-quarter) in the June quarter 2023-24 (Q1 FY24). The stock today climbed 2.14 per cent to close at Rs 80.33. At today's closing price, the scrip is 4.96 per cent away from its 52-week high price of Rs 84.52, a level seen on June 19, 2023. Non-banking lender IDFC also gained today as the stock settled 2.79 per cent higher, at Rs 114.30, after touching a fresh 52-week high of Rs 116.85.
Both the companies recently approved a "long-pending" merger aimed at simplifying their corporate structure and easing regulatory compliance. The announcement came on the heels of HDFC-HDFC Bank mega merger. As part of the deal, IDFC's shareholders would get 155 shares of IDFC First Bank for each set of 100 shares they currently own in the former. IDFC held a 39.93 per cent stake in the banking arm (IDFC First Bank) through IDFC Financial Holdings.
"This was a long-pending merger which was stuck due to the complex legal structure of IDFC and hence, took time to unwind," Asutosh Mishra, Analyst at Ashika Stock Broking, told news agency Reuters.
Private lender IDFC First today said its loans and advances grew from Rs 1,37,663 crore, as of June 30, 2022, to Rs 1,71,420 crore, as of June 30, 2023, YoY growth of 24.50 per cent. The QoQ growth was 6.70 per cent.
"Customer deposits grew from Rs 1,02,868 crore, as of June 30 2022, to Rs 1,48,508 crore, as of June 30, 2023, YoY growth of 44.40 per cent. The QoQ growth was 8.60 per cent," IDFC First Bank stated.
On technical setup, analysts remained mixed on the counter. Support level for IDFC First Bank could be seen at Rs 75.
"IDFC First Bank is trading close to its 52-week highs, and the broader structure of the stock looks strong. The stock has strong momentum in the short term as it finds buying emergence around its 21-DEMA. Hence, the stock remains strong and is likely to attract more buying once it takes out its one-year high of Rs 84.50, the probability of which is strong. As far as levels are concerned, the stock has resistance across its higher trading zone of 82-85 and is likely to find support in the 74-72 zone in the comparable period," Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One
"Since last 3 months, the counter has already given 58 per cent return. Though, it looks lucrative now due to its recent up move. But one needs to be cautious since it is trading near its historical high of the Rs 83-85 zone. Additionally, on a daily scale, there is a negative divergence on RSI daily, echoing towards some profit booking in the coming few sessions. As of now wait and watch no fresh longs are recommended," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"IDFC First Bank is slightly bearish on the daily charts with strong resistance at Rs 85. A daily close below support of Rs 75 could lead to target of 67 in the near term," said AR Ramachandran from Tips2trades.
Meanwhile, Indian equity benchmarks settled almost flat today. The 30-share BSE Sensex pack fell 33 points or 0.05 per cent to settle at 65,446.04, while the broader NSE Nifty index added 10 points or 0.05 per cent to settle at a fresh closing peak of 19,399.
Also Watch: Buzzing stocks on July 5, 2023: HDFC Bank, ITC, LTI Mindtree, Hero MotoCorp, others
Shares of IDFC First Bank rose on Wednesday after the private lender said its advances grew by 24.50 per cent on a year-on-year (YoY) basis and 6.70 per cent sequentially (quarter-on-quarter) in the June quarter 2023-24 (Q1 FY24). The stock today climbed 2.14 per cent to close at Rs 80.33. At today's closing price, the scrip is 4.96 per cent away from its 52-week high price of Rs 84.52, a level seen on June 19, 2023. Non-banking lender IDFC also gained today as the stock settled 2.79 per cent higher, at Rs 114.30, after touching a fresh 52-week high of Rs 116.85.
Both the companies recently approved a "long-pending" merger aimed at simplifying their corporate structure and easing regulatory compliance. The announcement came on the heels of HDFC-HDFC Bank mega merger. As part of the deal, IDFC's shareholders would get 155 shares of IDFC First Bank for each set of 100 shares they currently own in the former. IDFC held a 39.93 per cent stake in the banking arm (IDFC First Bank) through IDFC Financial Holdings.
"This was a long-pending merger which was stuck due to the complex legal structure of IDFC and hence, took time to unwind," Asutosh Mishra, Analyst at Ashika Stock Broking, told news agency Reuters.
Private lender IDFC First today said its loans and advances grew from Rs 1,37,663 crore, as of June 30, 2022, to Rs 1,71,420 crore, as of June 30, 2023, YoY growth of 24.50 per cent. The QoQ growth was 6.70 per cent.
"Customer deposits grew from Rs 1,02,868 crore, as of June 30 2022, to Rs 1,48,508 crore, as of June 30, 2023, YoY growth of 44.40 per cent. The QoQ growth was 8.60 per cent," IDFC First Bank stated.
On technical setup, analysts remained mixed on the counter. Support level for IDFC First Bank could be seen at Rs 75.
"IDFC First Bank is trading close to its 52-week highs, and the broader structure of the stock looks strong. The stock has strong momentum in the short term as it finds buying emergence around its 21-DEMA. Hence, the stock remains strong and is likely to attract more buying once it takes out its one-year high of Rs 84.50, the probability of which is strong. As far as levels are concerned, the stock has resistance across its higher trading zone of 82-85 and is likely to find support in the 74-72 zone in the comparable period," Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One
"Since last 3 months, the counter has already given 58 per cent return. Though, it looks lucrative now due to its recent up move. But one needs to be cautious since it is trading near its historical high of the Rs 83-85 zone. Additionally, on a daily scale, there is a negative divergence on RSI daily, echoing towards some profit booking in the coming few sessions. As of now wait and watch no fresh longs are recommended," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
"IDFC First Bank is slightly bearish on the daily charts with strong resistance at Rs 85. A daily close below support of Rs 75 could lead to target of 67 in the near term," said AR Ramachandran from Tips2trades.
Meanwhile, Indian equity benchmarks settled almost flat today. The 30-share BSE Sensex pack fell 33 points or 0.05 per cent to settle at 65,446.04, while the broader NSE Nifty index added 10 points or 0.05 per cent to settle at a fresh closing peak of 19,399.
Also Watch: Buzzing stocks on July 5, 2023: HDFC Bank, ITC, LTI Mindtree, Hero MotoCorp, others