IDFC First Bank stock loses favour, splits opinion among brokerages

Valuation of 1.2 times its FY20 book said to be high, but investors willing to take risks may consider the stock

The last six months was a smooth ride for the IDFC First Bank stock, with neat gains of 13 per cent. However, Morgan Stanley’s underweight report published on March 6 derailed its run — it fell 4.5 per cent on Thursday.

The report comes when domestic brokerages are positive on the bank and foreign ones are not. Besides Morgan Stanley, Deutsche Bank, too, has a ‘sell’ rating, while Nomura, Credit Suisse, and Goldman Sachs are all neutral on the stock. 

Scepticism largely ema­nates from the mismatch between the tall targets set by its new management and its current performance. At present, the