Jhunjhunwala shares hit record high amid market slump today, here are new price targets

Federal Bank shares hit a record high amid a major slump in the broader market today. Shares of Federal Bank rose to a record high of Rs 207.50 on Monday from the previous close of Rs 204.25 on the BSE. Later, it closed flat at Rs 204.15. The stock fell to a 52-week low of Rs 139.45 on January 23, 2024. Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3.45 million shares or 1.42% of the private credit portfolio at end of September quarter 2024.

The bank’s market capitalization stood at Rs 50,051 crore on Monday. The bank stock has a one-year beta of 1, indicating the average volatility during the period.

A total of 9.99 million shares of the bank changed hands, worth a turnover of Rs 20.48 million on the BSE.

On the technical side, the stock’s Relative Strength Index (RSI) stands at 64.6, indicating that the stock is neither trading in the oversold nor the oversold zone. Shares of Federal Bank are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Nuvama has assigned a price target of Rs 235 after Q2 earnings.

“The slippage remained steady quarter-on-quarter at 0.9% of delinquent loans. Agricultural slippage rose 24% quarter-over-quarter, COB slippage fell sharply, while BUB slippage was flat. The cost of credit remained at a low level of 28 bps. at 2.09%, PCR up from 72% ToQ Given strong asset quality and healthy revenue growth, management is confident of ability to fund growth, shares likely to trade at 1.1x FY26E BV . “, the brokerage said.

Axis Securities has a Buy request on the banking stock with a price target of Rs 214-222. Stop Loss can be fixed at Rs.190.

“Federal Bank is trending in a medium-term ascending channel on the weekly chart, recently finding support in the lower band and now advancing to the upper band of the channel. It broke a small descending triangle pattern at Rs 197 level in its ascending channel indicating a continuation of the medium-term uptrend, it declined during the formation of the pattern, however, it rose significantly on the breakout indicating an uptrend of market participants at that time reference line, generating a buy signal,” the brokerage said.

Centrum Broking has a buy call with a price target of Rs 250 on the stock.

“With the management transition, investors set clear priorities: 1) improving NIMs, 2) reducing
opex and 3) improving the overall profitability profile. The new management has indicated that it will outline its strategic approach to address these areas by next quarter. We view these developments very positively. We also move to 1HFY27E and continue to assign 1.5x P/B to arrive at a revised price target of Rs 250. We maintain BUY with 35% upside from current levels,” Centrum Broking said.

Dolat Capital has an accumulated call on Federal Bank with a price target of Rs 215.

“The fresh accrual of NPAs across segments has been steady. Despite some increase in MFI/PL delinquencies, better than expected trends in secured books offset the impact. The slippage should remain within the current range, according to the bank, barring a marginal increase. Asset quality trends were better. than anticipated, but the conditioning of newer, higher-yielding portfolios remains a key element monitored. We revise earnings and maintain ‘Accumulate’ rating with unrevised price target of Rs 215, valuing the bank at 1.4x P/ABV as on 26 September against RoA/RoE of 1.3. %/15%,” the brokerage said.

The bank reported a 10.8% rise in net profit at Rs 1,056.7 crore in Q2 compared to Rs 954 crore in the same quarter last year.

Total revenue increased to 7,541 million lei in Q2, compared to 6,186 million lei in the same quarter last year. The bank reported an interest income of Rs 6,577 crore during the quarter, higher than Rs 5,455 crore in the same period last year.