IDFC dives to 52-week low on foreign brokerage downgrade

IDFC dropped 8.17% to Rs 118 at 14:22 IST on BSE after a foreign brokerage downgraded the stock to underweight from equal-weight and slashed its target price on expectations of rise in funding costs.

Meanwhile, the S&P BSE Sensex was down 277.94 points or 1.37% at 20,024.19.

On BSE, 11.13 lakh shares were traded in the counter as against average daily volume of 7.32 lakh shares in the past one quarter.

The stock hit a 52-week low of Rs 117.50 in intraday trade today, 24 July 2013. The stock hit a high of Rs 127.30 so far during the day. The stock had hit a 52-week high of Rs 185.35 on 7 January 2013.

The stock had underperformed the market over the past one month until 23 July 2013, falling 5.86% compared with the Sensex's 8.14% rise. The scrip also underperformed the market in past one quarter, sliding 17.92% as against 5.85% rise in the Sensex.

The large-cap company has equity capital of Rs 1515.33 crore. Face value per share is Rs 10.

A foreign brokerage downgraded the stock to underweight from equal-weight and slashed its target price on expectations of rise in funding costs. The brokerage said asset quality risk is also increasing for IDFC as the economy slows and rates rise.

IDFC declares Q1 results on 29 July 2013. IDFC's consolidated net profit surged 57% to Rs 525.70 crore on 28.9% growth in total income to Rs 2218.41 crore in Q4 March 2013 over Q4 March 2012.

IDFC is an integrated infrastructure finance player providing end to end infrastructure financing and project implementation services. The company also offers asset management services through IDFC Mutual Fund.

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