Shares of private-sector lender Federal Bank Ltd are nearing a new high. In the previous session, the banking stock reached an all-time high of Rs 159.25. However, the stock experienced some profit-taking and closed 2.76% lower on Wednesday at Rs 153.10.
As of October 11, 2023, Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, owned 4.82 crore shares or 2.01% of the private lender. Data showed that the late Rakesh Jhunjhunwala had 2.45 crore shares, or 1.02% of the company. The promoters, on the other hand, had no investment in the bank.
On the BSE, the lender's market capitalization fell to Rs 37,233 crore. Federal Bank stock has climbed 13.49% in a year and 11.22% since the start of the year. The stock has a target price of Rs 182 set by brokerage Nirmal Bang.
"We have rolled our valuation forward to FY26E and maintain our 'BUY' rating on Federal Bank with a revised target price (TP) of Rs 182 (valued at 1.25x Dec. 2025E ABV plus subsidiary value per share of Rs13.10) as opposed to Rs176 (valued at 1.25x Sept. 2025E ABV plus subsidiary value per share of Rs13.8)." "Focus on growing a higher-yielding book," the brokerage said.
"IRCTC is bullish but also overbought on the daily charts," stated Abhijeet of Tips2trades, "with next resistances at Rs 895 & Rs 940." Investors should take profits at current levels because a daily closing below Rs 839 could lead to a goal of Rs 760 in the short term." On the BSE, 9.14 lakh shares were traded, resulting in a turnover of Rs 14.29 crore.
In terms of technicals, the stock's relative strength index (RSI) is 53.2, indicating that it is neither oversold nor overbought. The banking stock has a one-year beta of 0.2, indicating that it will be quite volatile throughout the term. Federal Bank shares are trading lower than the 5 and 10 day moving averages, but higher than the 20 and 50 day, 100 and 200 day moving averages.
For the quarter ended September 2023, the lender posted results that were higher than projected. In the second quarter, net profit increased 35.56% to Rs 954 crore, compared to Rs 703.7 crore in the September quarter of 2022. In Q2, the bank made its highest-ever quarterly profit.
Net interest income increased 16.7% to Rs 2056.4 crore in Q2 from Rs 1761.18 crore in the previous fiscal's September quarter. NII was also at an all-time high in the fourth quarter.
Deposits increased by 23% in the previous quarter to Rs 2.32 lakh crore, compared to Rs 1.89 lakh crore in the September 2022 quarter. Deposits increased 5% from Rs 1.89 lakh crore in the first quarter of the fiscal year.
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