Jhunjhunwala Portfolio: There is a golden chance of 30 percent profit in the legendary banking stock included in the portfolio of Rakesh Jhunjhunwala, a veteran investor called Warren Buffett of India.
Jhunjhunwala Portfolio: There is a golden chance of 30 percent profit in the legendary banking stock Federal Bank, included in the portfolio of Rakesh Jhunjhunwala, who is called Warren Buffett of India. Federal Bank’s shares are showing a fall of about three percent today, but according to market excers, the business of the bank will be strong due to the low cost of funds. Due to this, brokerage firm Motilal Oswal has retained buy rating for investing in it and has fixed a target price of Rs 130 per share. According to the shareholding pattern on BSE, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 7,57,21,060 shares of the bank, which is about 3.7 per cent. His holding in Federal Bank is around Rs 755.7 crore.
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Because of this the brokerage firm has placed bets
Despite the tough competition among banks, the December 2021 quarter was great for Federal Bank. The gross advance of the bank increased by 9.5 percent on a year-on-year basis and 4.6 percent on a quarterly basis to about Rs 1 lakh crore in the December quarter. According to the bank’s internal classification, its retail credit grew by 10.4 per cent and wholesale book by 8.3 per cent. At the same time, the deposit base of the bank also increased by 5.3 percent on a yearly basis and 3.6 percent on a quarterly basis to Rs 1.82 lakh crore.
Current Account Savings Account (CASA) grew by 15 per cent year-on-year and 4.3 per cent on a quarterly basis and its CASA Ratio grew by 3.13 per cent on a year-on-year basis and 0.26 per cent on a quarterly basis to 36.94 per cent, the highest level for the bank. Is. Considering the bank’s trading position and low cost of funds, the brokerage firm expects margins to remain stable, due to which analysts at Motilal Oswal have set a target price of Rs 130 per share for investing in it.
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Federal Bank strengthened by 15% this year
Today (April 5) there is a sell-off in the shares of Federal Bank, but experts are expressing confidence in it. Right now it is on the BSE at a price of about Rs 100 and has strengthened by about 14 percent in the last one month. So far this year it has strengthened by about 15 per cent and in the last one year it has strengthened by about 31 per cent. Now there is a possibility of an increase of 30 percent in the future as well.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
