Rakesh Jhunjhunwala-backed banking stock hits record high after Q2 results

According to Share Market According to experts, Federal Bank shares are expected to continue on the upside after a strong second quarter. He said Federal Bank’s share price could go up in the short term. 145 while it is expected to go up 184 each level over the long term. He advised the shareholders of Federal Bank to keep this banking stock owned by Rakesh Jhunjhunwala ahead for the stated goals based on their time horizon.

Federal Bank Share Price Target

Speaking on Federal Bank’s Share Price Outlook, Ravi Singh, Vice President and Head of Research, Share India said, “Federal Bank posted better-than-expected Q2 results and its asset quality also improved. Bank’s net interest margin also improved. Has risen 10 bps. Due to strong trading momentum of 3.3 per cent during the recently ended quarter, which has garnered meaningful gains in market share. Federal Bank stock may further move to lower levels 138 in the near term. Investors can stay on their buy positions for better returns.”

Advising stock market investors to buy Federal Bank shares, Sumeet Bagadiya, Executive Director, Choice Broking said, “For a very short time, new investors can buy Federal Bank at current levels. Maintaining Stop Loss at 135 Target 124 each.”

However, Manoj Dalmiya, founder and director, Praveen Equities, recommends stock market investors to buy and hold shares of Federal Bank for the long term, “Federal Bank has hit a new high. It reported 53 per cent of its standalone net profit.” For the second quarter ended September 2022, NII grew by 9 per cent. from 1,762 crore 1,479.4 crore year-on-year. Investors can deposit at current levels and expect a target of approx. 145 and a long-term goal of 184. We can expect further increase in revenue on account of festive activities.”

Federal Bank Q2 Results

In the July to September 2022 quarter, federal bank It reported a 53 per cent growth in its standalone net profit for the second quarter ended September 2022. increasing its net profit 703.7 crore vs. 460.3 crore in the same quarter last year. The private lender showed an impressive reduction in its non-performing assets. The private bank’s net NPAs fell from 0.94 per cent quarter-on-quarter (QoQ) to 0.78 per cent. In addition, its gross NPAs declined to 2.46 per cent, the lowest in 24 quarters.

Rakesh Jhunjhunwala stake in Federal Bank

As per Federal Bank’s April-June quarter shareholding pattern, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have invested in this private lender company. Rakesh Jhunjhunwala individually holds 5,47,21,060 shares or 2.63 per cent stake while he and Rekha Jhunjhunwala jointly hold 2,10,00,000 shares or 1.01 per cent stake. So, both Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together hold 4.63 per cent stake in Federal Bank.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.