Buy IDFC at target 210: Seshadri Bharathan

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd

What stock are you recommending?

Seshadri Bharathan: I would recommend IDFC. We are seeing very strong loan growth for this company. We are seeing growth of around 35% CAGR for next 2 years' time. Also the margins are expected to remain stable in FY11 and FY12 for this company. Investors should buy into this stock because at this point of time, this stock trades around 2.2 times price to adjusted book value of around Rs 81 for FY12. The sense is that with economy growing robust loan growth and the company is well capitalised for any future expansion etc. So my sense is that investors should buy into this company with a price target around Rs 210.