IDFC First Bank- Next Multi bagger?
Just a thought, without looking
to fundamentals, Technical Chart, Expert View etc etc , can IDFC First Bank be
next multi-bagger?
How this thought emerges? Let us
look at below comparison with recently established private sector bank(s).
Banking Licence history of
recent private sector bank and their highest closing share price
In 1994, Reserve Bank of India
(RBI) has issued banking licence to HDFC Bank and ICICI Bank. Thereafter in
2003-2004, RBI issued new licence to Kotak Mahindra Bank and Yes Bank. Latest
in the category are IDFC First Bank and Bandhan Bank which got licence in 2015.
Highest closing share price of
these banks since their listing are as follows (Source: MoneyControl.com)
|
Bank Name |
Highest Closing Price |
Date of Highest Price |
Face Value (FV) of Share |
No. of times from FV |
|
HDFC Bank |
1305.50 |
Dec 19, 2019 |
Re 1 |
1305.50 |
|
ICICI Bank |
552.20 |
Dec 30, 2019 |
Re 2 |
276.10 |
|
Kotak Mahindra Bank |
1740.00 |
Feb 19, 2020 |
Re 5 |
348.00 |
|
Yes Bank |
404.00 |
Aug 20, 2018 |
Re 2 |
202.00 |
|
Bandhan Bank |
741.80 |
Aug 09, 2018 |
Re 10 |
74.18 |
Data suggest that highest price
has moved upto 1300 times of face value. Even if we consider lowest price
movement in the category than also it comes to 74 times of face value.
Currently (around 15th June
2020), the market price of IDFC First Bank is in the range of Rs 20-25 per equity
share. With face value of Rs 10/-. this share is currently traded at 2 to 2.5
times of face value. At this price, this share looks attractive if we compare
the market price of recently established private sector banks.
Many factors affect the share
price of any company and above analysis is just an attempt to connect the share
price movement of other private sector bank vis-a-vis potential lies with IDFC
First Bank.
As mentioned, above is Just a thought
and you should do your own research before investing.
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