IDFC First Bank May See Near-Term Consolidation After Q4 Results, Say Analysts

2 Min Read
Highlights
  • IDFC First Bank posts ₹724 crore net profit in Q4 FY24, up 10% YoY.
  • Analysts expect the stock to consolidate in the near term.
  • Focus areas: asset quality, margins, and loan growth.
  • Share price shows volatility post results amid cautious investor sentiment.

IDFC First Bank has reported its Q4 FY24 results, which have led analysts to predict a phase of consolidation in the stock price in the near term. The bank posted a net profit of ₹724 crore for the quarter, marking a 10% year-on-year increase. Its net interest income (NII) grew by 24% to ₹4,469 crore, supported by healthy loan growth and a stable net interest margin (NIM) of 6.01%.

Despite the decent operational performance, analysts believe that much of the positive news is already factored into the current stock price. They expect the stock to move sideways as investors await further clarity on medium-term growth drivers. Key triggers to watch include asset quality trends, especially in the retail loan book, the bank’s ability to sustain margins, and the pace of deposit growth.

On the asset quality front, gross non-performing assets (GNPA) stood at 2.04%, while net NPA came in at 0.68%, reflecting a stable risk profile. Analysts have noted that while IDFC First Bank’s fundamentals remain strong, fresh triggers will be essential for the next phase of stock re-rating.

Following the earnings announcement, IDFC First Bank’s share price witnessed some volatility, indicating a cautious sentiment among investors. Analysts remain selectively optimistic, advising investors to monitor upcoming management commentary and broader market conditions before taking new positions.

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