CMP: 112

Infrastructure Development Finance Company Ltd. offers infrastructure project financing services. The Company primarily finances energy, telecommunications, and transportation projects.

IDFC is a good buy in large-cap banks. As said earlier, only banks with most infra loans exposure are to be avoided. Its currently trading at a P/E of little over 12. Revenues have risen smartly from 1500 Crores to over 4500 Crores in the last 5 years. Profits also rose in similar lines from 462 Crores to 1277 Crores over 5 years. NPM has stayed strong around 30% over 5 years which is impressive. Considering recession lows of 48, and profit growth of 100% since then, current stock bottom can be put at 100. With minimal downside, its a good buy for long term.