Home / Markets / Stock Markets /  Rakesh Jhunjhunwala-backed banking stock hits record high after Q2 results

Rakesh Jhunjhunwala-backed Federal Bank shares hit life-time high of 132.20 on NSE after the private lender reported strong Q2FY23 results on Friday. Federal Bank share price opened at 127 apiece and went on to make its intraday low of 125.10 per share. However, after the announcement of Q2 results, Federal Bank stock price started ascending and went on to hit its record high within few minutes of results announcement.

According to stock market experts, Federal Bank shares are expected to remain in uptrend after the strong Q2 numbers. They said that in short term, Federal Bank share price may go up to 145 whereas it is expected to go up to 184 apiece levels in long term. They advised Federal Bank shareholders to further hold this Rakesh Jhunjhunwala-owned banking stock for the mentioned targets, depending upon their time horizon.

Federal Bank share price target

Speaking on Federal Bank share price outlook, Ravi Singh, Vice President & Head of Research at Share India said, "Federal Bank posted better than expected Q2 results and it’s asset quality also showed improvement. The bank’s net interest margin also improved 10 bps YoY to 3.3 per cent during the recently ended quarter due to strong business momentum, which has aided meaningful gains in the market share. The stock of Federal Bank may rise further for the levels of 138 in near term. Investors may hold their buy positions for better return."

Advising stock market investors to buy Federal Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Fresh investors with very short term time horizon can buy Federal Bank at current levels for 135 target maintaining stop loss at 124 apiece."

However, Manoj Dalmia, Founder & Director at Proficient Equities recommended stock market investors to buy and hold Federal Bank stocks for long term citing, "Federal Bank has formed a new high. It has reported 53 per cent rise in its standalone net profit for the second quarter ended September 2022 and NII rose by 9 per cent to 1,762 crore from 1,479.4 crore year-on-year. Investors can accumulate at current levels and can expect a target of around 145 and a long-term target of 184. We can expect further revenue growth due to festive activities."

Federal Bank Q2 results

In July to September 2022 quarter, Federal Bank reported a rise in its standalone net profit by 53 per cent for the second quarter ended September 2022. Its net profit increased to 703.7 crore vs 460.3 crore in the same quarter last year. The private lender showed an impressive reduction in its non-performing assets. The private bank's net NPA fell to 0.78 per cent from 0.94 per cent quarter-on-quarter (QoQ). Moreover, its gross NPA dipped to 2.46 per cent becoming the lowest in 24 quarters.


Rakesh Jhunjhunwala shareholding in Federal Bank

As per the shareholding pattern of Federal Bank for April to June quarter, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have invested in this private lender company. Rakesh Jhunjhunwala holds 5,47,21,060 shares or 2.63 per cent stake in individual capacity whereas he and Rekha Jhunjhunwala jointly holds 2,10,00,000 shares or 1.01 per cent stake. So, both Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together holds 4.63 per cent stake in Federal Bank.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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