Shares of this Mid-cap Private-sector Bank slipped around 0.30 percent today. On the contrary, having a positive outlook, the Bank’s stock has been covered with a ‘Buy’ tag with a decent upside. In the last one year, the scrip has gained around 29 percent from Rs 103 in July 2022 to the current price level.
The stocks of Federal Bank Limited are currently trading at Rs 132.15, slipping around 0.30 percent compared to the previous closing levels of Rs 132.60. It has a market capitalization of Rs 28,000 crores.
Having a walkthrough of the latest consolidated financials, the Bank, on a YoY basis, has increased its total income as well as net profits with the former moving from Rs 4,318 crores during Q1FY22-23 to Rs 6,091 crores during Q1FY23-24, and, the latter increasing from Rs 643 crores to Rs 892 crores.
Another popular metric to discuss is the non-performing assets (NPAs). The gross NPAs have reduced from 2.67 percent during Q1FY22-23 to 2.37 percent during Q1FY23-24, and, the most recent movement in the net NPAs is from 0.96 percent to 0.74 percent keeping the timeframe the same.
Sharekhan has given a ‘Buy’ tag to the stock with a target price of Rs 170 indicating an upside of 29 percent as compared to the current stock prices prevailing in the market.
The rationale behind providing such a recommendation is pertaining to the strong loan growth, sustained fee income & return ratios despite the headwinds in the sector.
The Federal Bank Ltd is a commercial banking company based in India. The Bank operates through a network of ATMs and branches across India. The company’s business segments consist of the treasury segment, corporate/wholesale banking segment, retail banking segment, and other banking operations. It generates the majority of its revenue from the Indian market.
Written by Amit Madnani
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