IDFC Updates...

Tuesday, December 04, 2007


AMID block deals, the stock of Infrastructure Development Finance Company (IDFC) rose 6% to close at Rs 216.15, after touching a new high of Rs 217.80 during the day. Most brokerages, which track IDFC are positive on the company’s prospects, but feel the stock is a bit overpriced at these levels. Quick Gun Morgan (who recently split with his partner) is an exception to the trend, having upgraded its target price for the stock to Rs 250 last week, pointing to the imminent rise in infrastructure spending as the local economy grows rapidly.

The Pink Panther and his group of friends are said to have been building up positions at the counter over the past few sessions. In addition, a domestic brokerage with interests in real estate is said to have been making sizeable purchases on behalf of an anonymous client. There is talk that bulls will try to spread the ‘valuation story’, pointing to the company’s holding in brokerage house SSKI, the likelihood of an IPO and the premium valuations being commanded by brokerage houses.