Beyond Technical Analysis
IDFC Ltd- Nearing LongTerm Channel BreakoutIDFC has not Created any value for its shareholders in past 14 Years, However stock is trading at a inflection point Currently. Will we see the channel breakout here in IDFC? Only time will tell. However Interesting times are ahead for IDFC Ltd.
Management has talked about shareholder value creation few days back and they are serious about divestment of AMC Business, this will be value assertive for IDFC Ltd.
IDFC Ltd- A Interesting Case of UndervaluationIDFC is a Parent Company of IDFCFirst bank which holds Approx 37% Stake in IDFCFirst Bank.Currently IDFCFirst bank has a Valuation of 31000Cr. 37% will be Valued at 11000Cr.
IDFC also has Mutual Fund Business with 1.26LCr AUM. Recently Listed Aditya Birla AMC has a AUM of 3.1Lakh Cr. So Market is Valuing 1LCr AUM of AMC at 6000Cr Mcap. By this Logic, IDFC AMC should be valued at 7500Cr.
In Totality IDFC Business could be Valued at 18500Cr.
Current Marketcap of IDFC is Just 8500Cr, A Whopping Discount to its Holding Value. Market will discover this value and bet on IDFC, If they are bullish on IDFCFirst bank.