Idfc looks overbought at 178.full year EPS will be less than 8 in any case & that translates into almost 22 P/E which is very high. may come down at around 140 - 145 levels then it will be a good counter to watch.
Yes ... EPS would not be more than 8... max 8... but look at the reserves... 4700 cr... which translates to around 20 Rs in reserve per share... factor that in and I think it deserves high PE...
All stocks which move in the Index get an extra 3-4 pe levels, Hence this moved up after inclusion in the index.
However this stock has no potential to be a multibagger and will be used as ploy to balance the index movememnts as being a non specific promoter interest.
at levels of 177 it is now over bought and any further upside can be used to exit by medium term investors.
From settlememnt players shorting can be tried as all financilas other than Relcap are showing some tiredness , let us see.
i have exited longs @177 (158/162/166) and gone short at 177/- & will short one more if 181 comes first with sl of 183.50p for the settlement.
You are right.. at 178 it has factored inclusion in nifty index.
However fundamentals do suggest 140 to 145 range before a further move.
sell in this rally as any time it will crash...
reserves have no major role to play as its topline is 20000 crores and equity base itself is more than 1200 crores....i advise you not to go by this logic..
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