Pick of Week : IDFC

1. Infrastructure Development Finance Company
 A 1994 report from the Indian Ministry of Finance Department of Economic Affairs found a lack of specialized
financial intermediaries offering funds for infrastructure projects.
 IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June
1997. In 1998 the company registered with the Reserve Bank of India (RBI) as a non-banking financial company
and in 1999 it formally became a Public Financial Institution.
 IDFC registered with the Securities and Exchange Board of India (SEBI) as a merchant banker and as an
underwriter in 2000 and in 2001 as a debenture trustee.
 Also, the company set up Infrastructure Development Corporation (Karnataka) Ltd (IDECK) pursuant to a
shareholders agreement between IDECK and the State of Karnataka, HDFC and IDFC.
 In 2006-07, the company increased its stake in National Stock Exchange of India Ltd from 2.2% to 8.2% and
acquired a 8.71% stake in the Asset Reconstruction Company (India) Ltd. The company along with Citigroup,
India Infrastructure Finance Company Ltd and the global private equity company Blackstone, launched a USD 5
billion initiative for financing infrastructure projects in India.
 Technical Outlook
 Looking at the technical structure it is evident that the stock has completed a “Bullish Crab Harmonic” pattern
on daily chart the coordinates of which are as follows:
 Technical Parameter: XA of the leg from 148.55 to 188, AB of the leg completed at 160 (i.e.61.8% of XA leg.), BC
of the leg completed at 178.85 (i.e. 61.8% of AB leg), CD of the leg completed at 121.40 levels. (I.e. 161.8% of XA
and 312% of BC leg).
 Moreover, price has given the breakout of its consolidation range from 121.40 to 132.40 levels on daily chart, in
which it had been trading for 3 weeks.
 Apart from this, stock has been trading with the support of 121 level which is 61.8% Fibonacci retracement level
of its previous bull run from 75.67 to 188 level.
 Recently the stock has given close above its short term moving average of 21 DEMA at 130.20, which shows that
stock is in uptrend.
 The momentum indicator RSI has shown positive divergence on daily chart, which shows positive breath in the
stock.
 Based on the mentioned technical setup, we believe that the stock could reach towards 160 levels in few trading
sessions.
Company IDFC
Recommendation Buy
Sector : NBFC
CMP : 133.70 & Upto 131
Price Potential : 160
Stop Loss (Closing Basis): 121
Mkt Cap (Rs. Cr.): 21,320
TTM EPS (Rs.) 9.28
TTM Sales (Rs. Cr.) 9,733
BVPS (Rs.) 109.98
Reserves (Rs. Cr.) 15,937
P/BV 1.22
PE 14.41
Bloomberg Code : IDFC:IN
Reuters Code : IDFC.NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: IDFC
19th Sept, 2015
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2. Pick of the Week: IDFC
19th Sept, 2015
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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