Jhunjhunwala stock hit an all-time high today amid the market crash. Here are new price targets

Federal Bank shares hit all-time highs today amid a major crash in the broader market. Shares of Federal Bank rose to a record high of Rs 207.50 on Monday against the previous closing price of Rs 204.25 on BSE. Later, it closed on a flat note 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, owned 3.45 crore shares or a 1.42 percent stake in the private lender as of end-September 2024.

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

A total of 9.99 lakh shares of the bank have changed hands, amounting to a turnover of Rs 20.48 crore on BSE.

In terms of technical data, the stock’s relative strength index (RSI) stands at 64.6, which indicates that the stock is trading neither in the oversold nor in the oversold zone. Federal Bank stock is trading higher than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

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

“Slippage remained the same on a quarterly basis at 0.9% of subordinated loans. Agricultural slippage rose 24% quarter-on-quarter, COB slippage fell sharply, while BUB slippage remained flat. Credit costs stood at a low 28 basis points. The GNPL rose 3% quarter-on-quarter, while the GNPL ratio declined marginally. from 72% quarterly to 2.09%. Management remains optimistic about maintaining healthy asset quality across MFIs given the bank’s higher rejection rate through the BC model Given strong asset quality and healthy earnings growth, we maintain ‘BUY’. Management is confident that it will be able to make sufficient commitments to finance the growth of the MFIs. said the broker.

Axis Securities has put a buy call on the banking stock with a target price of Rs 214-222. Stop loss can be set at Rs 190.

“Federal Bank is moving within a medium-term ascending channel on the weekly chart, recently found support in the lower band and is now moving towards the upper band of the channel. It has broken above a small descending triangle pattern at the Rs 197 level However, within the rising channel, which indicates a continuation of the medium-term uptrend, fell significantly during the pattern formation, indicating that at that point a wave of market participants entered the reference line, generating a buy signal,” the brokerage said .

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

“With the management transition, investors have set clear priorities: 1) improving NIMs, 2) reducing them
opex, and 3) improving the overall return profile. The new leadership has indicated that they will outline their strategic approach to addressing these areas by next quarter. We assess this development very positively. We also move to 1HFY27E and continue to allocate 1.5x P/B to arrive at our revised price target of Rs 250. We maintain BUY at 35% upside from current levels,” Centrum Broking said.

Dolat Capital has made a cumulative call on Federal Bank with a price target of Rs 215.

“New growth in NPAs was stable across segments. Despite some increase in the number of delinquent MFIs/PLs, better than expected trends in covered books offset the impact. According to the bank, slippage should remain within the current range, barring a marginal increase. Asset quality trends were better than expected, but seasoning newer portfolios with higher returns remains a key focus. We adjust earnings and maintain ‘Accumulate’ rating with unchanged price target of Rs 215, valuing the bank at 1.4x Sep-26E P/ABV against RoA/RoE of 1.3. %/15%,” the brokerage said.

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

Total income rose to Rs 7,541 crore in the second quarter, against Rs 6,186 crore in the same quarter last year. The bank reported interest income of Rs 6,577 crore during the quarter, higher than Rs 5,455 crore in the same period a year earlier.