IDFC First Bank Ltd.
NSE: IDFCFIRSTBIDFC First Bank Ltd.: A 30-second snapshot
IDFC First Bank trades at ₹71.25, 4.5% below its 200-DMA of ₹74.57, with a trailing PE of 37.9 — the highest among the four large private banks in its peer group. Five-year earnings have declined at -23.2% CAGR while revenue growth was -1.1%, and the quality score of 31 ranks the bank 4th of 6 peers. The forward PE of 11.0 implies the market is pricing a sharp earnings recovery not yet reflected in historical data.
P/E
37.9
Forward P/E
11.0
ROE
—
Debt / Equity
—
Profit Margin
+32.8%
Div. Yield
+0.3%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
41/100
News
5 headlines · 2 positive · 0 negative
IDFC First Bank Ltd stock (INE092T01019): shares extend rebound after recent earnings - AD HOC NEWS
AD HOC NEWS
IDFC First Bank Ltd stock (INE092T01019): earnings momentum and retail focus draw attention - AD HOC NEWS
AD HOC NEWS
IDFC First Bank Q1 Results 2026 - Find IDFC First Bank Q1 Earnings Result | IDFCFIRSTB Q1 results - Mint
Mint
IDFC First Bank Q4 Results 2026 - Find IDFC First Bank Q4 Earnings Result | IDFCFIRSTB Q4 results - Mint
Mint
Raja Venkatraman recommends three stocks for 29 May - Mint
Mint
Recent context
- ·Recent news headlines reference earnings momentum and a share price rebound after recent results; the news sample is thin at 5 items, all from two sources (AD HOC NEWS and Mint), limiting breadth of coverage.
- ·The Mint coverage includes both Q4 FY26 and Q1 FY26 results pages, indicating active earnings reporting cycle attention; no negative sentiment items appear in the 5-headline sample.
- ·A third-party analyst (Raja Venkatraman, Mint, 29 May 2026) included the stock in a three-stock recommendation list; the specific action was not captured in the sentiment data.
Strengths
- +FCF was positive in 4 of the available years, and the debt trend is classified as falling, suggesting the balance sheet is moving in a constructive direction at the liability level.
- +The stock has returned +6.95% over 12 months, outperforming its 3-month flat reading of +0.39% and indicating that the longer-term price trend has been positive despite recent stagnation.
- +Profit margin of 32.78% is a high absolute level for a bank, indicating the reported earnings (when they occur) carry strong conversion from revenue to bottom line.
- +Analyst coverage of 18 analysts produces a mean rating of 2.68 on a 1–5 scale (lower = more constructive), reflecting a spread of views across a reasonably sized analyst base.
Weaknesses
- −5-year earnings growth of -23.2% CAGR and 5-year revenue growth of -1.1% show persistent deterioration across both top-line and bottom-line, and zero years of ROE above 15% in the persistence record indicate the bank has not crossed the threshold return associated with quality compounders.
- −Trailing PE of 37.9 is elevated against a multi-year earnings decline; with AXISBANK at 15.1 and HDFCBANK at 16.6, the bank trades at a 2–2.5x valuation premium to larger private-sector peers on a trailing basis, a gap that depends heavily on the forward earnings recovery materialising.
- −Quality score of 31 ranks the bank 4th of 6 in its peer group, below BAJFINANCE (53), AXISBANK (50), and HDFCBANK (50), reflecting a weaker composite of profitability, consistency, and efficiency metrics relative to the peer set.
- −Price remains 4.5% below the 200-DMA of ₹74.57, and the 52-week drawdown is -18.1%; the stock has not reclaimed its long-term moving average despite the 12-month positive return.
Open questions
- ?Does the forward PE of 11.0 rest on analyst consensus earnings estimates that reflect a structural change in the bank's business mix, or are the forecasts extrapolating from a single strong quarter?
- ?How much of the trailing PE premium over peers like AXISBANK (15.1) and HDFCBANK (16.6) is attributable to the bank's retail-banking growth story, and what milestones would signal that story is on track?
- ?The debt trend is falling and FCF has been positive in 4 years — does the balance sheet improvement reflect a deliberate capital management strategy, or is it a function of slower loan-book growth?
- ?With ROE at zero qualifying years above 15% over the persistence window, what would need to change in the bank's asset mix or cost structure for it to consistently achieve returns comparable to Axis Bank (ROE 13.15%) or Bajaj Finance (ROE 17.91%)?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IDFCFIRSTB | IDFC First Bank Ltd.You're viewing | 37.9 | — | 31 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹71.25
SMA 50
₹66.70
SMA 200
₹74.57
RSI (14)
61.6 (neutral)
From 52w high
-18.1%
1Y return
+7.0%
3M return
+0.4%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings growth of -23.2% and 5-year revenue growth of -1.1% indicate persistent deterioration across both top-line and bottom-line over the measurement window; zero years of ROE above 15% in the persistence record reinforces the pattern of sub-threshold profitability.
- highTrailing PE of 37.9 is the second-highest among the six banking peers shown (AXISBANK 15.1, HDFCBANK 16.6, BAJFINANCE 29.1, BAJAJFINSV 28.8, HDFCLIFE 66.2); a near-38x trailing multiple alongside a 5-year earnings CAGR of -23.2% creates a structurally wide gap between current valuation and historical earnings power. The forward PE of 11.0 implies the market is pricing a large earnings inflection that is not yet visible in trailing data.
- mediumPrice of ₹71.25 is 4.5% below the 200-DMA of ₹74.57, indicating the stock has not yet reclaimed its long-term moving average. The 52-week drawdown stands at -18.1%, and the 3-month price change of +0.39% reflects near-flat momentum despite a modestly positive 1-year return of +6.95%.
- mediumQuality score of 31 ranks 4th of 6 in the banking peer group, below BAJFINANCE (53), AXISBANK (50), and HDFCBANK (50); consistency score of 40 and 0 years of ROE above 15% reflect weak long-run profitability relative to larger private-sector peers.
- lowNews coverage is sparse at 5 items total; thin sample size limits the signal value of the neutral sentiment reading (2 positive, 3 neutral, 0 negative) and may not capture the full picture of recent corporate developments.
Cross-section contradictions
- Trailing PE of 37.9 — above BAJFINANCE (29.1) and BAJAJFINSV (28.8) — coexists with 5-year earnings growth of -23.2%; an elevated multiple alongside a multi-year earnings decline is atypical within the banking peer set.
- Forward PE of 11.0 against a trailing PE of 37.9 implies the market is pricing an earnings recovery of roughly 3.4x the current earnings base; no such inflection is visible in the 5-year historical record, creating a notable divergence between forward consensus and trailing trajectory.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days