IDFC - March 2013 Results Preview - Motilal Oswal

- Loan growth is expected to remain healthy - 6.6% QoQ and 18% YoY.

- We expect spreads to improve 8bp on a QoQ basis, translating into ~5.6% QoQ and 19% YoY growth in NII.

- Revenue from investment banking and broking business are expected to improve sequentially, given the increased activity levels in capital markets. We expect asset management revenue to improve marginally QoQ. Loan related and others are also likely to improve sequentially.

- Asset quality is expected to remain stable. However, we conservatively estimate provisions of INR678m, against INR518m in 3QFY13 and INR838m in 4QFY12.

- We expect PAT to grow by 47% YoY and 8% sequentially.

- The stock trades at 1.4x FY14E BV and 1.2x FY15E BV.

Source : Equity Bulls

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