IDFC First Bank Limited
IDFC First Bank Limited Fundamental Analysis
IDFC First Bank Limited (IDFCFIRSTB.NS) shows weak financial fundamentals with a PE ratio of 38.72, profit margin of 3.30%, and ROE of 4.15%. The company generates $476.9B in annual revenue with strong year-over-year growth of 19.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IDFCFIRSTB.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakIDFCFIRSTB.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakIDFCFIRSTB.NS trades at a premium to fair value.
Growth Score
ModerateIDFCFIRSTB.NS shows steady but slowing expansion.
Financial Health Score
WeakIDFCFIRSTB.NS carries high financial risk with limited liquidity.
Profitability Score
WeakIDFCFIRSTB.NS struggles to sustain strong margins.
Key Financial Metrics
Is IDFCFIRSTB.NS Expensive or Cheap?
P/E Ratio
IDFCFIRSTB.NS trades at 38.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IDFCFIRSTB.NS's PEG of 7.40 indicates potential overvaluation.
Price to Book
The market values IDFC First Bank Limited at 1.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.29 times EBITDA. This signals the market has high growth expectations.
How Well Does IDFCFIRSTB.NS Make Money?
Net Profit Margin
For every $100 in sales, IDFC First Bank Limited keeps $3.30 as profit after all expenses.
Operating Margin
Core operations generate 4.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.15 in profit for every $100 of shareholder equity.
ROA
IDFC First Bank Limited generates $0.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IDFC First Bank Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
IDFC First Bank Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
IDFCFIRSTB.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How IDFCFIRSTB.NS Stacks Against Its Sector Peers
| Metric | IDFCFIRSTB.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.72 | 18.79 | Worse (Expensive) |
| ROE | 4.15% | 849.00% | Weak |
| Net Margin | 3.30% | 2879.00% | Weak |
| Debt/Equity | 1.10 | 0.93 | Neutral |
| Current Ratio | 0.06 | 675.77 | Weak Liquidity |
| ROA | 0.44% | -20989.00% (disorted) | Weak |
IDFCFIRSTB.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IDFC First Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.12%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
134.17%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-319.83%
Industry Style: Value, Dividend, Cyclical
Declining