Rakesh Jhunjhunwala Portfolio After climbing to its 52-week high At 107.65 levels in April 2022, Federal Bank shares went through a profit-booking phase and settled near their 52-week low. 77.50 level on NSE. However, the stock has given rise to around 13 percent over the past month logging some strong rebounds. After the strong first quarter results on Friday, stock market analysts have become very bullish regarding the shares of Federal Bank. He believes Federal Bank’s share price could go up 128 each level over a long period.
Highlights of Federal Bank Q1 Results 2022
Tagging this ‘buy’ Rakesh Jhunjhunwala Portfolio Yash Gupta, Equity Research Analyst at Stock, Angel One said, “In Q1FY23, the company reported an increase in interest earned Q1FY22 to . 3355 crore in 3628 crore in Q1FY23 up 8.14%. Net interest income has also shown good signs of growth of 13.2% from from 1418 1605 crore in Q1FY23. Big surprise from net profit, 63.5% increase in net profit 367 crore 600 crore in Q1FY2023 due to sharp decline in provisions, provisions and contingencies Q1FY22 to . 640 crore in 166.7 crore in Q1FY23. We continue to see improvement in GNPA, this quarter the company recorded a GNPA of 2.69 as compared to 2.8 in Q4 of FY22 and 3.5% in Q1 of FY20.”
“Federal Bank saw a strong rebound in its credit growth, with total advances up 16%, followed by the CV/CE segment led by auto and gold loans. All these performances were reflected in its net level, net Profit grew 63.5% y-o-y. The bank managed its costs well and strong NII growth led to net profit during the quarter. The bank’s strong liability franchise and favorable retail deposit mix in the coming quarters It is likely to continue its strong growth momentum,” said Arijit Malakar, Head of Retail Research at Ashika Group.
“Federal Bank reported strong broad-based credit growth, while managing overall costs well, resulting in highest ever gains. On the asset quality front, gross non-performing assets June 2022 Gross advances improved to 2.69%, from 2.8% QoQ. The addition of strong collection mechanism helped Federal Bank’s strong recovery and upgradation of . 281 crore,” said Jitendra Upadhyay, Senior Equity Research Analyst at Bonanza Portfolio.
Federal Bank Share Price Target
Advising the ‘Dips on Dips’ strategy to the stock market investors, Sumeet Bagdia, Executive Director, Choice Broking said,Federal Bank shares Are on the verge of giving up a breakout 100 on closing basis. However, the banking stock continues to rise and there may be some profit-booking over the counter. So, buy on dips 92 per share level for short to medium term target 110 each level.”
Anand Dama, Senior Research Analyst, Emkay Global Financial Services, suggests long term ‘buy and hold’ saying, “We revise FY23/24 earnings estimates to 5 per cent against 1 per cent, less LLPs /Factoring in OPEX, and expect ROAS. keep 128 per share.”
Rakesh Jhunjhunwala Shareholding
As per the shareholding pattern of Federal Bank for the March 2022 quarter, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold shares in this South Indian bank. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 2,10,00,000 or 1.01 per cent stake in the bank. However, Rakesh Jhunjhunwala in his personal capacity holds 5,47,21,060 shares of Federal Bank or 2.64 per cent stake in the bank. So, Jhunjhunwala couple holds 3.65 percent stake in this South Indian bank.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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