IDFC First Bank shares trading near 52-week high, set for 25% upside; here's why
IDFC First Bank shares gained 1.75% to Rs 86.20 in opening deals on Wednesday.
- Jan 7, 2026,
- Updated Jan 7, 2026 4:49 PM IST
IDFC First Bank Ltd shares, which are trading near their 52-week high, have received a positive recommendation from global brokerage Nomura. Shares of the Mumbai-based private lender are set to hit a price target of Rs 105, according to the brokerage. This suggests a 25% upside from Tuesday's closing price of Rs 84.78.
The stock hit a 52 week high of Rs 87 on January 2, 2026. IDFC First Bank shares gained 1.75% to Rs 86.20 in opening deals on Wednesday. Later, the stock closed 0.63% lower at Rs 84.20. IDFC First Bank stock trades lower than the 5-day, 10 day, but higher than the 20-day, 30 day, 50-day, 100-day moving, 150 day, and 200 day moving averages.
The banking stock rose 37.41 per cent in a year but lost 1 per cent in two years.
Total 2.34 lakh shares of the firm changed hands amounting to a turnover of Rs 2 crore. Market cap of the firm rose to Rs 73,682 crore.
The brokerage expects IDFC First Bank to record a 39% compound annual growth rate (CAGR) in core Pre-Provisioning Operating Profit from financial years 2026 to 2028. This performance is attributed to a projected reduction of 50 basis points in cost-to-assets, a 14 basis points improvement in Net Interest Margins (NIMs), and a 35 basis points decline in credit costs.
These factors are expected to boost the bank's Return on Assets (RoA) to 1.2% and Return on Equity (RoE) to 11.8% by the 2027 financial year. Nomura also highlights the bank's transition from a wholesale-led lender to a granular, retail-focused model and the development of a robust liabilities franchise as key strengths.
The bank's fee income profile stands out, exceeding 2% of average assets and outperforming its peers. Analyst consensus reflects broad optimism about IDFC First Bank's prospects. The lender's sector-leading earnings per share (EPS) CAGR of 67% through to FY28 further distinguishes its growth.
Nomura notes that the bank has moved beyond a multi-year investment and balance sheet transition phase and now demonstrates sustained, broad-based profitability. The mix of "buy," "hold," and "sell" recommendations by the analyst community underscores ongoing evaluation of the bank’s evolving business model and financial metrics.
IDFC First Bank Ltd shares, which are trading near their 52-week high, have received a positive recommendation from global brokerage Nomura. Shares of the Mumbai-based private lender are set to hit a price target of Rs 105, according to the brokerage. This suggests a 25% upside from Tuesday's closing price of Rs 84.78.
The stock hit a 52 week high of Rs 87 on January 2, 2026. IDFC First Bank shares gained 1.75% to Rs 86.20 in opening deals on Wednesday. Later, the stock closed 0.63% lower at Rs 84.20. IDFC First Bank stock trades lower than the 5-day, 10 day, but higher than the 20-day, 30 day, 50-day, 100-day moving, 150 day, and 200 day moving averages.
The banking stock rose 37.41 per cent in a year but lost 1 per cent in two years.
Total 2.34 lakh shares of the firm changed hands amounting to a turnover of Rs 2 crore. Market cap of the firm rose to Rs 73,682 crore.
The brokerage expects IDFC First Bank to record a 39% compound annual growth rate (CAGR) in core Pre-Provisioning Operating Profit from financial years 2026 to 2028. This performance is attributed to a projected reduction of 50 basis points in cost-to-assets, a 14 basis points improvement in Net Interest Margins (NIMs), and a 35 basis points decline in credit costs.
These factors are expected to boost the bank's Return on Assets (RoA) to 1.2% and Return on Equity (RoE) to 11.8% by the 2027 financial year. Nomura also highlights the bank's transition from a wholesale-led lender to a granular, retail-focused model and the development of a robust liabilities franchise as key strengths.
The bank's fee income profile stands out, exceeding 2% of average assets and outperforming its peers. Analyst consensus reflects broad optimism about IDFC First Bank's prospects. The lender's sector-leading earnings per share (EPS) CAGR of 67% through to FY28 further distinguishes its growth.
Nomura notes that the bank has moved beyond a multi-year investment and balance sheet transition phase and now demonstrates sustained, broad-based profitability. The mix of "buy," "hold," and "sell" recommendations by the analyst community underscores ongoing evaluation of the bank’s evolving business model and financial metrics.