Can this Rs 65 stock turn multibagger? IDFC First Bank in focus

Cheap Stock, Big Return: The stock market saw a significant surge on Monday after a three-day closure. Sensex and Nifty showed strong gains in early trading. Meanwhile, a bank stock has skyrocketed and received a BUY rating. 

IDFC First Bank Share Price

Several stocks are trading in the green as soon as the stock market opened on Monday, April 21st. These include IDFC First Bank shares. It has jumped 3.33% in early trade. As of 10 am, this stock is trading in the range of ₹65. The stock closed at ₹62 in the last trading session on Thursday, April 17th.

IDFC First Bank Share: Reason for the Surge

On April 17, 2025, IDFC First Bank's board approved raising ₹7,500 crore in funds. Warburg Pincus and ADIA will jointly invest ₹7,500 crore, which will aid the bank's growth. Following the announcement of this investment through preferential equity shares, brokerage firm Jefferies is also bullish on it.

IDFC First Bank: Analyst Opinion

Global brokerage firm Jefferies reported that Warburg Pincus will invest ₹4,876 crore from its affiliate company in this deal. Abu Dhabi Investment Authority (ADIA) will invest ₹2,624 crore through its subsidiary. Thus, a total of ₹7,500 crore will be invested, which is much higher than expected.

How Will IDFC First Bank Benefit?

Information provided by the bank indicates that deposits have increased sixfold and the loan book has doubled in 6 years. The CASA ratio has reached 47.7% from 8.7%. After fundraising, CRAR could go up to 18.9% from 16.1%. The bank's retail loan growth and deposit growth are also continuously improving.

IDFC First Bank Share Price Target

Jefferies has given a buy recommendation on this bank stock with a target price of ₹73. The stock made its high of ₹86 in April 2024. On April 7th of this year, the stock made a low of ₹52.5. However, recovery has been seen since then. Thus, analysts are bullish.

Disclaimer: Always consult your market expert before making any investment.