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