Federal Bank’s stock has become the brokerage house’s choice after the December quarter results. The brokerage believes that the business activity of the bank is improving.
Rakesh Jhunjhunwala Portfolio Bank Stock: Rakesh Jhunjhunwala’s portfolio is always under the watch of retail investors. Many investors prepare their investment strategy by looking at their portfolio. If you are also looking for a stock with strong fundamentals included in their portfolio, then you can keep an eye on Federal Bank. This stock included in Big Bull’s portfolio can give you better returns in future. After the December quarter results, it has become the choice of the stock brokerage house. The brokerage believes that the December quarter has been great for the bank, further strong growth is expected.
Improve business activity
Brokerage house Motilal Oswal says that the business activity of Federal Bank is improving. The bank has presented better results in the December quarter. There has been a growth of 29 percent in the bank’s PAT on a yearly basis and it has been Rs 520 crore. Whereas it was expected to grow at 12 percent. The bank has reduced the provisioning by 27 percent on a quarterly basis, due to which this became possible. Core fee income has grown at 16 per cent year-on-year and 12 per cent on a quarterly basis.
how much is the target for the share
According to the report, the advance of the bank has grown by 12 percent on a yearly basis. There is improvement in banking, commercial banking, agri and corporate book. The CASA ratio is at an all-time high of 36.7 per cent. Retail deposits have gone up to 94%. Talking about asset quality, it is continuously improving. PCR is stable at 66 per cent which is the highest among mid size banks. Restructuring book is 2.5 per cent of the loan, while the collection efficiency is stable at 96 per cent. The brokerage house has given a target of Rs 130 while advising to buy in the stock. In terms of current price of Rs 96, it can give 36% return.
What is the share of Rakesh Jhunjhunwala?
Rakesh Jhunjhunwala has expressed confidence in Federal Bank in the December quarter. His stake in the bank is 3.7 per cent in the December quarter. He held 3.7 per cent stake in the bank in the September quarter as well. At present, there are 75,721,060 shares of the bank in his portfolio, whose value is around Rs 724 crore. He held 2.8 per cent stake in the bank in the June quarter of the current financial year. Whereas in the March quarter of FY 2021, he had 2.4 percent stake in the bank and 2.4 percent in the December quarter before that.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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