Kotak securities has the following view on IDFC,
IDFC is now formally classified as an ‘infrastructure NBFC’. IDFC’s ‘infra NBFC’ categorization, in line with our expectations, improves its financial flexibility thereby supporting its strong business plans–growing loan book by 3X in 3-4 years. The proposed capital issuance will temper profitability in the medium term though strong scope for growth in the infrastructure sector provides comfort. We retain ADD rating on the stock with a TP of Rs195.
