IDFC is more attractive

Thebullishtrends : IDFC is trading at Rs.201 in BSE. The primary objective of IDFC (Infrastructure Development Finance Company) is it involves in corporate debt market to provide long term funds to infrastructure projects. Even there is a competition from commercial and private sector banks it enjoys the best return of investment (ROI) and low leverage proportion of bad debts and operating costs. IDFC is generating 55pecent of income from infrastructure loans.

IDFC posted Rs.602crore net sales and Rs.179 crore net profit for the second quareter end, it reported 25.6% growth on its consolidated profit after tax Rs. 194.48 crore as against Rs. 154.81 crore in corresponding quarter of last year.

The EPS for (Sept'07) Rs.4.20, is discounting the present price of Rs.201 by 47.06 times. The boom for Infrastructure Industry will continue, favourable interest rates and helped by additional capital raising in this quarter will be great advantage to IDFC, hence it will be more gained in coming days. IDFC is expected to repot a full diluted EPS 5.40 for 2007-08. The present price Rs.201 is more attractive at current levels.