IDFC valuations bit unattractive; stock a long-term buy: Hemang Jani

In a chat with ET Now, Hemang Jani, Senior VP, Sharekhan, shares his view on IDFC, which is gearing up to launch its banking operations in the months to come.

ET Now: What is your view on IDFC? The NBFC has announced November 6 as a tentative date for the listing of IDFC Bank shares. Do you think this is a case for a significant rerating and there would be a sort of 'clamour' to buy the stock in the run up to the listing?

Hemang Jani: IDFC has been holding a lot of promises, but it has been a huge underperformer. There has been a slowdown, particularly in IDFC's core business. Even as the asset quality has been good, the performance has not been that great. Now that we have few more banking names coming up in digital banking and stuff like that, IDFC is going to be the name of the game.

We think that we have to see what kind of strategy IDFC has in place, what kind of branch network are we really looking at. The stock holds huge potential for investors who have 2-3 years' perspective, but it is not looking that attractive on the valuations front.