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Wednesday, December 1, 2021

JhunJhunwala Portfolio: Rakesh Jhunjhunwala again increased stake in this private bank? Know what is the opinion of brokerage firms on stocks

Rakesh Jhunjhunwala again increased stake in Federal Bank

Rakesh Jhunjhunwala has again increased his stake in Federal Bank. At the end of the September quarter, Jhunjhunwala had bought 5,47,21,060 shares of Federal Bank. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala bought the mill. Kar had bought 2,10,00,000 shares of it, thus increasing their stake in the bank to 1.01 per cent. Meanwhile, Rekha Jhunjhunwala has also increased her stake in Tata Communications from 1.04 per cent to 1.08 per cent.

Federal Bank shares can make a big jump

Brokerage firms can see the share of Federal Bank Bank jump 30 percent from its current level. After COVID-19, there has been a tremendous recovery in the business of this private sector bank. Its gross advance has increased by 9.7 percent as compared to last year. In the same period, the total deposits have increased by 10 percent. This midcap stock has been in Jhunjhunwala’s portfolio since 2016. The share of Federal Bank is currently trading at Rs 103.15. The stock has gained 35 per cent so far this year. Both the brokerage firm Emkay Global and Motilal Oswal have given it a ‘BUY’ rating with different target prices.

Brokerage firms have predicted better profits

According to Emkay Global, Federal Bank is rapidly transforming itself into a new generation bank. It is expanding across all asset, liabilities and payments business through its Neo Banking tie-up. This will also reduce its cost in the long term. The brokerage firm has said that apart from Equitas, Federal Bank is its preferred stock in the small/mid cap segment. The Bank’s Liability/Asset Quality Profile is quite good. There is stability in management. The bank is ahead in adopting the digital approach and its return ratio is also expected to improve significantly. A jump of up to 30 percent can be seen in its returns.

Motilal Oswal says that there has been a strong growth in the deposits of Federal Bank for the July-September quarter. Customer deposits have grown by 11 per cent as compared to last year. At the same time, it has increased by 2.5 percent compared to the previous quarter. With this, the bank’s CASA ratio has improved to 36.2 percent. This is the highest CASA ratio of the bank till date. The liquidity coverage ratio of the bank stood at 216 per cent in the previous quarter. But now it has increased to 226 percent. Motilal Oswal has said that its margins may increase in the second quarter of FY 2021-22 as credit trends are recovering and fund cost is also declining.

JhunJhunwala Portfolio: Rakesh Jhunjhunwala again entered this stock, is there any big opportunity for profit?

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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