Buy IDFC - CMP: Rs.154, TP: Rs.180 - Prabhudas Lilladher

Valuations attractive post corrections: We believe the risk reward ratio is favorable post around ~16% corrections from the mid January highs. The stock is currently trading at around 1.5x FY14 P/B and we see ~17 % upside from the current levels. Though we see ROE's stuck at 15-16% range, the current valuations underlie our positive view on the stock.

Margins to sustain with positive bias: Despite increasing share of corporate loans and a large part of the growth coming from lower margin refinancing opportunities, the NIM's should benefit from lower wholes sale rates and risk aversion to infra financing in the system.

Adequate provisioning on books, a significant comfort: The performance on asset quality has been stable except from some blip from Deccan exposure. Though IDFC may see some inch up in NPA but the provisioning at ~1.6% of loans provides significant comfort.

Source : Equity Bulls

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