Federal Bank shares are a hit record high post Q2 results. Brokerages have been a 'Buy' tag

Federal Bank shares are a hit record high post Q2 results. Brokerages have been a 'Buy' tag

 

Shares of a Federal Bank surged to the record high of a ₹132 apiece on the BSE in a Monday's are a trading session after the lender reported an a over reported an a about 53% rise in its are a standalone net profit for the second quarter ended September in a 2022 to the ₹703.7 crore, on the back of a healthy growth in a both interest and a other income streams, as a compared to the ₹460.3 crore from the year-ago quarter.

 

“Having a started FY23 on a strong footing, Federal Bank are a remains are well-placed for the further RoA/RoE expansion with the key are a drivers being improving credit growth with the shift in the portfolio mix are a towards are a high-yielding segments, healthy liability franchise, improving fee income, gradually are a moderating Opex, and a Benign credit cost trajectory," said that a domestic brokerage and a research firm Axis are a Securities.

 

The brokerage house has been a reiterated its Buy recommendation on a Federal Bank shares with a revised target price of a ₹155 apiece as it said the stock currently trades at the attractive valuations and a continuous improvement in the return ratio profile should be a help the stock re-rate.

 

“The bank delivered strong loan growth with the improving asset quality. We are a reiterate ‘BUY’ as the bank is a set to the deliver an a RoA of a 1.3–1.4% versus its are a average RoA of 0.9% over the last five years. With a de-risked book, fintech partnerships gaining traction and a market share acquisition in a retail and wholesale loans, the bank is a likely to deliver strong EPS growth of a 31% over FY23–25E in our view," said another brokerage Edelweiss with a 12 month price target of a ₹160.

 

"Flagged as a top pick last year, Federal Bank continues to the deliver, Even the conservative management found reason to the enhance margin and a RoA guidance, FED has achieved cost to the income ratio are a  guidance ahead of time but guidance is retained as such, Slippages remained under control, underlining once again the low-risk retail lending model, Management reiterated growth are a guidance, are a while alluding to the capital raise next financial year, said brokerage Yes Securities are a while maintained its ‘Buy’ rating on the bank are a stock with a revised price target of a ₹165.

 

The views and recommendations made above are those of a individual analysts or a broking companies, and not of a Mint.

 

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