Analysts' corner

IDFC
Reco price: Rs 113;
Target: Rs 150
For Q4 FY12, IDFC’s net profit of Rs 340 crore (up 17 per cent y-o-y) was lower than analysts’ expectations, largely due to higher provisioning towards loans and investments. Key positives in the results were: (1) uptick in loan growth to 28 per cent, (2) stability of spreads and (3) stable asset quality. Analysts were a tad disappointed by the lower fees and higher cost. CLSA has raised its earning estimates for FY13-14 by four to five per cent and expects profit to grow at 14 per cent compounded annual rate. Upgrade to buy.

CLSA

INFO EDGE
Reco price: Rs 744;
Target: Rs 733
Info Edge’s Q4 FY12 numbers were better than expectations on the back of strong revenue growth across verticals in a challenging environment. Increasing market share in naukri.com to 61 per cent has helped the company post best ever margins and benefit from operating leverage. High deferred sales revenue will continue to boost revenue growth, going forward. In the current economic situation, analysts believe the 20 per cent plus growth is sustainable in the recruitment vertical. Upgrade to Hold.

Centrum Research