Federal Bank shares rise to a record high The lender reported a nearly 53% rise in its standalone net profit for the second quarter ended September 2022, after 132 each on the BSE in Monday’s trading session. 703.7 crores, on the back of healthy growth in both interest and other income streams, as compared to 460.3 crore from the year-ago quarter.
“Having started FY13 on a strong footing, Federal Bank is well placed for further ROA/ROE expansion, with key drivers being high-yield sectors, healthy liability franchise, improving fee income, slowing growth in revenue growth, and higher growth rates. Credit growth is improving with gradual change in portfolio mix. OPEX, and moderate credit cost trajectory,” said domestic brokerage and research firm Axis Securities.
Brokerage house reiterates its buy recommendation Federal Bank shares with a revised target price of 155 each as stated that the stock is currently trading at attractive valuations and the continuous improvement in the return ratio profile should help re-rate the stock.
“We reiterate ‘Buy’ as the bank is set to deliver an ROA of 1.3-1.4% against its average ROA over the last five years. With a risk-free book, with fintech participation in retail and wholesale loans and market share acquisitions “The bank is in our view likely to deliver strong EPS growth of 31% in FY23-25E,” said another brokerage Edelweiss with 12 months. price target 160.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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