External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

IDFC First Bank Limited / Equity Bottom-Up

<ul><li>Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created for microfinance business (to the tune of Rs 315 Cr, which equals 99% of SMA1+2 portfolio) and one legacy infrastructure toll road account with the Maharashtra Government withdrawing toll charges at Mumbai Entry Point, which adversely affected the infra customer (to the tune of ~Rs 250 Cr).</li><li>Excluding the provision buffer created on the microfinance and the legacy toll account, credit costs would have been at ~1.8% (vs 1.7% in Q1FY25), largely within the guided range.</li><li>Microfinance continues to remain a pain point with slippages elevated in Q2 and credit costs climbing up to ~6% in H1FY25. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created for microfinance business (to the tune of Rs 315 Cr, which equals 99% of SMA1+2 portfolio) and one legacy infrastructure toll road account with the Maharashtra Government withdrawing toll charges at Mumbai Entry Point, which adversely affected the infra customer (to the tune of ~Rs 250 Cr).Excluding the provision buffer created on the microfinance and the legacy toll account, credit costs would have been at ~1.8% (vs 1.7% in Q1FY25), largely within the guided range.Microfinance continues to remain a pain point with slippages elevated in Q2 and credit costs climbing up to ~6% in H1FY25. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank Ltd - Elevated Provisions Dent Earnings, RoA Improvement Delayed!

Derivatives and Quantitative Strategist

Gaudenz Schneider

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY Index (NIFTY INDEX)</a> and the <a href="https://www.smartkarma.com/entities/nse-nifty-bank-index" target="_blank" data-smartkarma-citation="entities:26811:1" rel="noopener">NSE Nifty Bank Index (NSEBANK INDEX EQUITY)</a> reached all-time highs on 26 September 2024 but have since declined.</li>
<li>Most stocks in the Bank Index have fallen below their 200 and 50 day moving average,. Volatilities have gone up, but trade cheap when compared to historical levels.</li>
<li>Opportunities present themselves either in stocks that stayed resilient during the downturn (<a href="https://www.smartkarma.com/entities/federal-bank-ltd" target="_blank" data-smartkarma-citation="entities:11784:1" rel="noopener">Federal Bank (FB IN)),</a>or fell and gained in implied volatility. A long-short strategy might also be considered.</li>
</ul>


The NIFTY Index (NIFTY INDEX) and the NSE Nifty Bank Index (NSEBANK INDEX EQUITY) reached all-time highs on 26 September 2024 but have since declined.
Most stocks in the Bank Index have fallen below their 200 and 50 day moving average,. Volatilities have gone up, but trade cheap when compared to historical levels.
Opportunities present themselves either in stocks that stayed resilient during the downturn (Federal Bank (FB IN)),or fell and gained in implied volatility. A long-short strategy might also be considered.


EQD | Nifty Banks – Single Stock Options and Relative Value Opportunities

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions.</li><li>NII grew 25% YoY to INR46.9b (in line), while margin contracted 13bp QoQ to 6.22%.</li><li>Opex grew 21% YoY to INR44.3b (5% better than MOFSLe).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions.NII grew 25% YoY to INR46.9b (in line), while margin contracted 13bp QoQ to 6.22%.Opex grew 21% YoY to INR44.3b (5% better than MOFSLe).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank - Elevated Credit Cost Drags Down Earnings

<ul><li>Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ).</li><li>The growth in corporate and infrastructure lending was muted at 5/3% and -29/1% YoY/QoQ respectively.</li><li>Retail asset growth was driven by Housing (+22/10% YoY/QoQ), Wheels (33/5% YoY/QoQ), Consumer Loans (+35/5% YoY/QoQ) and Credit Cards (+53/7% YoY/QoQ). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ).The growth in corporate and infrastructure lending was muted at 5/3% and -29/1% YoY/QoQ respectively.Retail asset growth was driven by Housing (+22/10% YoY/QoQ), Wheels (33/5% YoY/QoQ), Consumer Loans (+35/5% YoY/QoQ) and Credit Cards (+53/7% YoY/QoQ). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IDFC First Bank Ltd.  - RoA Improvement to 1.4% by FY27E In Sight, Maintain BUY!

<ul><li>The erstwhile IDFC Bank started its operation in Oct’15 as a bank after its demerger from IDFC Ltd.</li><li>In its efforts to diversify the portfolio from infrastructure, IDFC Bank announced merger with a NBFC - Capital First in 2018, paving way for a new entity IDFC First Bank (IDFCFB)m.</li><li>Currently, the bank operates out of 944 branches and 1164 ATMs across the country. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The erstwhile IDFC Bank started its operation in Oct’15 as a bank after its demerger from IDFC Ltd.In its efforts to diversify the portfolio from infrastructure, IDFC Bank announced merger with a NBFC - Capital First in 2018, paving way for a new entity IDFC First Bank (IDFCFB)m.Currently, the bank operates out of 944 branches and 1164 ATMs across the country. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pick of the Week: IDFC First Bank Ltd. - 01 JULY 2024

India

IDFC First Bank Limited provides a full range of commercial banking services for retail and institutional customers. The Bank offers fixed deposits, debit cards, savings account, cash management, and other services. IDFC Bank serves its customers in India.

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IDFC First Bank Limited (IDFCBK IN)

IDFC First Bank Ltd - Elevated Provisions Dent Earnings, RoA Improvement Delayed!

Elevated provisions are a RoA dampener – IDFCFB’s provisions were significantly higher on account of prudent provision buffer of Rs 568 Cr created...

Axis Direct

EQD | Nifty Banks – Single Stock Options and Relative Value Opportunities

The NSE Nifty Bank Index hit a record high in September 2024 but has since dropped. Option opportunities are found in resilient or volatile bank...

Gaudenz Schneider

IDFC First Bank - Elevated Credit Cost Drags Down Earnings

IDFC First Bank (IDFCFB) reported a 1QFY25 PAT of INR6.8b (-11% YoY, in line) dragged down by elevated provisions. NII grew 25% YoY to INR46.9b (in...

Motilal Oswal

IDFC First Bank Ltd. - RoA Improvement to 1.4% by FY27E In Sight, Maintain BUY!

Operational Performance: Advances growth was healthy at 21/4% YoY/QoQ, led by retail assets (+47/4% YoY/QoQ). The growth in corporate and...

Axis Direct

Pick of the Week: IDFC First Bank Ltd. - 01 JULY 2024

The Bank has launched and scaled up several products across all segments, like retail, commercial and wholesale banking, rural products as well as...

Axis Direct

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