UBS initiates coverage on IDFC First Bank with neutral call, cites profitability constraints despite 12% upside
has initiated coverage on
IDFC First Bank
with a 'neutral' rating and a target price of Rs 85, implying a potential upside of nearly 12% from current levels. The brokerage flagged structural profitability challenges, driven by elevated credit costs and operating expenses, that may cap returns despite sectoral tailwinds and growth in core operations.
The brokerage pointed to 'limited ROA upside due to persistently high credit costs and elevated operating expenses.' While it acknowledged that stable net interest margins (NIMs) and a supportive sectoral backdrop should aid the bank's growth trajectory, UBS said it expects the return on assets to 'remain around 1% by FY27.'
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Shares of IDFC First Bank were trading 0.9% lower at Rs 75.98 on the BSE on Friday, July 11.
The stock has delivered an 18.5% gain in 2025 so far, with a 26% rise over the last six months and a 6.7% increase in the past month. However, on a one-year basis, the stock remains 2.8% lower.
Technical trend remains supportive
Live Events
From a technical standpoint, the stock is currently trading above six of its eight key simple moving averages (SMAs), including the 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. It is, however, below its 5-day and 10-day SMAs.
The Relative Strength Index (RSI) stands at 67.5, just shy of the overbought threshold of 70, while the Moving Average Convergence Divergence (MACD) is at 2.3, staying above both the center and signal lines—indicators that suggest a continuation of the current bullish trend.
Interim dividend declared after seven years
Separately,
IDFC First Bank shares
are trading ex-dividend on Friday after the board declared an interim dividend of Rs 0.25 per share for FY25. The record date to determine eligible shareholders has been fixed as July 11.
The bank had declared the dividend in an exchange filing back in April. This marks the first time in nearly seven years that the bank is trading ex-dividend. According to BSE records, the previous instance was on July 23, 2018, when the bank paid a final dividend of Rs 0.75 per share.
Also read |
NSDL IPO set to open soon: Unlisted share price down 20% from peak. Here are 7 things to watch out for
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
14 minutes ago
- Business Standard
DoT issues ₹7,800 cr demand notice to Tata Communications over AGR dues
The Department of Telecom has issued a "show-cause-cum-demand notice" of about Rs 7,800 crore to Tata Communications over adjusted gross revenue dues, according to an official note by the company. The demand has been raised by the Department of Telecom (DoT) for adjusted gross revenue (AGR) from 2005-06 till 2023-24, as per the note dated July 17. "As at June 30, 2025, the company has received 'Show Cause-cum Demand Notices' ('demand notices') from Department of Telecommunications of India aggregating to Rs 7,827.55 crore for financial years ranging from FY 2005-06 to FY 2023-24, which have been revised over a period of time," Tata Communications Managing Director AS Lakshminarayan said. He said the demand notices include Rs 276.68 crore towards disallowance of deductions claimed by the company on payment basis for the financial year (FY) 2010-11 under ISP (internet service provider) licence and FY07 and FY10 under NLD (national long distance) licence. Tata Communications has existing appeals relating to its ILD (International Long Distance), NLD, and ISP licences that were filed in the past and are pending at the Supreme Court and telecom tribunal TDSAT. Lakshminarayan said the company's appeals are not covered by the apex court judgement dated October 24, 2019, on AGR under the old telecom licence regime called UASL. "Further, the company believes that all its licences are different from UASL, which was the subject matter of Hon'ble Supreme Court judgement of October 24, 2019. The company, based on its assessment and independent legal opinions, believes that it will be able to defend its position," Lakshminarayan said. As per initial calculation by the government, telecom operators had liability to pay around Rs 1.65 lakh crore in total AGR dues till FY19. The calculation as of March 2022 showed that the AGR liability on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore up to financial year 2018-19. The government calculation at that time did not include liability on Tata Communications. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
28 minutes ago
- Time of India
Taurus Daily Horoscope Today, July 28, 2025: Let your belief light the path
Today is a day to release old doubts and step forward with full belief in yourself. You may feel uncertain in some areas, but deep within, your inner self knows what to do. Let go of past mistakes and stop overthinking about what could go wrong. The universe is reminding you to trust your skills and worth. Every moment you choose confidence over fear, you grow. Be proud of how far you have come. Let today be about moving forward without hesitation. Taurus Love Horoscope Today In love, your confidence makes your connection stronger. If you are in a relationship, share your true feelings without fear of judgment. Your partner will respond well to your honesty. If you are single, show your true self without trying to impress anyone. The right person will be drawn to your authenticity and calm energy. Let go of emotional doubts from past experiences. Trust that love comes when you stop chasing and start receiving. A kind word today may open a soft door. Taurus Career Horoscope Today Career-wise, your calm strength can lead to steady progress. Do not doubt your decisions or wait too long to act. Take initiative in your tasks and speak up where needed. You may get a new opportunity or suggestion that helps your growth. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Tirunelveli: 1 Trick to Reduce Belly Fat? Home Fitness Hack Shop Now Undo Keep your focus and do not be distracted by small office politics. Your dedication is being noticed, even in silence. Confidence in your ability is your biggest professional tool today. Lead your day with steady faith, not hesitation. Taurus Money Horoscope Today Money matters become easier when you act with clarity. Avoid thinking too much before taking small but necessary financial steps. If you are planning a big expense, review everything but do not delay out of fear. Make decisions that reflect your long-term goals. Someone close may give you a helpful suggestion about saving or earning. Take it with an open mind. Wealth grows when you manage with belief, not fear. Let your confidence be reflected in your spending and planning today. Taurus Health Horoscope Today Your health may feel stable overall, but hidden tension could affect your digestion or sleep. Practice mindful breathing to release mental pressure. A short walk, time in natural sunlight, or listening to calming sounds can improve your mood. Eat meals on time and do not skip breakfast. Your body wants balance, not extremes. If you have ignored minor symptoms, take care of them now. Good health starts with trust in your body and its signals. Let confidence become your healing energy. Discover everything about astrology at Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces . Read your detailed Horoscope Today and Horoscope Tomorrow here.
Time of India
40 minutes ago
- Time of India
Crushed by exhaustion, delivery man breaks down into tears: 'I regret leaving school'
A deeply moving video of a Chinese food delivery worker breaking down during his shift has stirred widespread attention on social media, highlighting the extreme mental and physical strain faced by gig economy workers. Dressed in a yellow delivery uniform and helmet, the man was seen crying uncontrollably as he opened up about the pressures of his daily life. Physically Exhausted, Emotionally Drained In the now-viral clip, the driver speaks about working 10-hour days without any real opportunity for rest. He describes his routine as one that leaves him "exhausted like a dog" and says he cannot afford to slow down even for a moment. Any lapse in effort, he explains, directly affects his ability to feed himself. The constant anxiety of not meeting daily targets has worn him down, both mentally and physically. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing PGDM Design Thinking Data Analytics Technology Operations Management Leadership CXO Data Science Product Management Healthcare Others others Degree Artificial Intelligence healthcare Finance MCA Public Policy Project Management Management Cybersecurity Data Science MBA Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details The man shares that he often feels overwhelmed by the burdens of his job and regrets the decisions that led him to this point. He says he dropped out of school at a young age, despite warnings from teachers, and now feels that his life would have been different if he had chosen to continue his education. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Algeria: Jewelry On Sale For Half Price (See Price List) Jewelry | Search Ads Learn More Undo Regret Over Past Choices Speaking through tears, the delivery worker says he wishes he had studied harder instead of leaving school early. He acknowledges that his decision was driven by stubbornness, and it is a choice he now deeply regrets. The emotional toll of not being able to support his parents or live a life of his choosing weighs heavily on him. View this post on Instagram A post shared by CHINA IN A MINUTE (@chinaminutes) He adds that the combination of relentless work hours and unending stress has left him without hope or someone to confide in. The video captures a moment of deep vulnerability as he admits to feeling like a failure in the eyes of his family and himself. Public Response and Broader Concerns The video resonated with thousands of viewers, many of whom expressed their sympathy and concern for the driver. Comments poured in acknowledging the broader issue of burnout and insecurity in gig-based jobs. Some users emphasized the need for societal support systems that allow people second chances, such as opportunities to resume education later in life. Others reminded him that even degree-holders today face similar struggles in an increasingly difficult job market. The situation brings to light the growing concerns over labor conditions in the gig economy. Last year, a similar tragedy occurred when another Chinese delivery worker reportedly died while napping on his bike after an 18-hour shift. According to friends, he was the sole breadwinner of his family and sometimes slept for only three hours before starting work again.
