ICICI Sec maintains buy on IDFC

MUMBAI: Infrastructure Development Finance Company (IDFC) remains a 'buy' with a price target of Rs 90 for Mumbai-based brokerage ICICI Securities, post its third quarter earnings. The brokerage has downgraded its earnings estimates of IDFC for 2008-09 and 2009-10.

"We lower FY09E & FY10E earnings estimates 8.6% & 19.1% respectively to reflect moderation in loan growth and lower income on capital market-related businesses," ICICI Securities said in a report.

The brokerage said though asset quality has remained robust at least till this quarter, it expects some stress on the Rs30 billion- real estate portfolio of IDFC due to liquidity crisis faced by some borrowers.

"While provisions stood at Rs30mn in Q3FY09, we expect provisioning build-up to accelerate going forward," it added. At 12:50 pm, IDFC shares were up 1% at Rs 55.