IDFC First Bank: Why Investec and Axis Securities See Double-Digit Upside
📅 Published on: 6th July 2025
Both brokerages cite strong retail franchise, improving margins, and lower credit costs as key drivers
🔍 Brokerage Views & Targets
| Broker | Rating | Target Price (₹) | Upside (%) | Key Rationale |
|---|---|---|---|---|
| Investec | Buy | 90 | 24% |
– Strong 29% PPOP CAGR expected FY25–28 – Cost-to-asset ratio to drop ~80 bps – Sustainable RoE to reach 14% by FY28 – Retail lending & deposit growth stabilizing – Valuation upgraded to 1.4x FY27 book |
| Axis Securities | Buy | 85 | 10% |
– MFI stress fading; CE recovery at 99.2% – 20% loan growth CAGR expected through FY27 – Margins to recover in H2FY26 – Credit cost expected to moderate from Q1FY26 – Opex growth capped at 12–13%, driving RoA |
📌 Final Verdict
Both brokerages remain bullish on IDFC First Bank with a focus on its transformation into a profitable, retail-led bank. Investec projects a longer-term upside of 24% based on strong profitability metrics, while Axis offers a short-to-medium-term 10% upside as near-term margin pressures fade. Key risks include short-term NIM compression and performance of the MFI book.
📚 Sources:
- Investec Brokerage Commentary – July 2025
- Axis Securities – IDFC First Bank Punch Report dated 2nd July 2025
🔒 Disclaimer
This blog post is for informational purposes only and is not intended as investment advice or a recommendation to buy or sell any securities. The views and data presented are based on publicly available brokerage reports by Investec and Axis Securities as of July 2025.
Investments in the securities market are subject to market risks. Readers should consult with a SEBI-registered financial advisor before making any investment decisions. The author, publisher, or platform shall not be held liable for any loss incurred based on the information presented herein.
The content may refer to third-party research or recommendations which are subject to change. Past performance is not indicative of future results. The inclusion of any brokerage name or rating does not imply endorsement by this blog.
SEBI Registration Disclaimer: This blog or its author is not a SEBI-registered Research Analyst or Investment Advisor. For official financial guidance, please consult a SEBI-registered professional.
