IDFC Limited
IDFC Limited Fundamental Analysis
IDFC Limited (IDFC.NS) shows weak financial fundamentals with a PE ratio of 16.66, profit margin of 17.04%, and ROE of 8.37%. The company generates $0.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IDFC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakIDFC.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIDFC.NS trades at attractive valuation levels.
Growth Score
ModerateIDFC.NS shows steady but slowing expansion.
Financial Health Score
ExcellentIDFC.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateIDFC.NS maintains healthy but balanced margins.
Key Financial Metrics
Is IDFC.NS Expensive or Cheap?
P/E Ratio
IDFC.NS trades at 16.66 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IDFC.NS's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values IDFC Limited at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 430.85 times EBITDA. This signals the market has high growth expectations.
How Well Does IDFC.NS Make Money?
Net Profit Margin
For every $100 in sales, IDFC Limited keeps $17.04 as profit after all expenses.
Operating Margin
Core operations generate 88.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.37 in profit for every $100 of shareholder equity.
ROA
IDFC Limited generates $7.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IDFC Limited generates strong operating cash flow of $8.59B, reflecting robust business health.
Free Cash Flow
IDFC Limited generates strong free cash flow of $8.59B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.37 in free cash annually.
FCF Yield
IDFC.NS converts 4.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
283.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
69.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How IDFC.NS Stacks Against Its Sector Peers
| Metric | IDFC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.66 | 18.79 | Better (Cheaper) |
| ROE | 8.37% | 848.00% | Weak |
| Net Margin | 1703.73% | 2879.00% | Weak |
| Debt/Equity | 0.02 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 69.56 | 675.55 | Strong Liquidity |
| ROA | 7.79% | -20989.00% (disorted) | Weak |
IDFC.NS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IDFC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical