IDFC First Bank shares trading near 52-week high, set for 25% upside; here's why

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.