Rakesh Jhunjhunwala portfolio: Banking stock hits new 52-week high. Do you own?
Rakesh Jhunjhunwala stock today opened upside and hit new 52-week high of ₹109.45 apiece on NSE
PremiumRakesh Jhunjhunwala portfolio: Extending post-Q1 results rally on Wednesday morning deals, Federal Bank share price climbed to a new 52-week high of ₹109.45 apiece on NSE. Federal Bank share price today opened upside and went on to hit fresh 52-week high, which is its intraday high as well. The Rakesh Jhunjhunwala stocks witnessed some profit-taking at 52-week high but it is still above its previous 52-week high of ₹107.65 apiece levels.
According to stock market experts, this Rakesh Jhunjhunwala stock has given breakout at ₹104 apiece levels on closing basis and after strong Q1 results, it is expected to continue in uptrend and can go up to ₹125 apiece levels in short term.
Speaking on Federal Bank share price outlook, Sumeet Bagadia, Executive Director at Choice Broking said, "Federal Bank shares are in uptrend facing minor resistance at around ₹110 apiece levels. One can expect the banking stock to break its immediate hurdle once the stock sustains above ₹108 per share levels for around one to two hours after climbing to a new 52-week peak. It may go up to ₹115 in near term and those who have this stock in their portfolio are advised to hold the stock with stop loss at ₹100 apiece levels."
On reason for rise in Federal Bank shares, Santosh Meena, Head of Research at Swastika Investmart said, "Federal Bank Ltd. has seen a great performance post its Q1 FY23 results as the bank had posted strong results with net profit rising 64% YoY due to improvement in asset quality and growth in advances. The bank witnessed a rise in NIM’s, strong growth in core fee income especially on the retail front, noteworthy improvement in the asset quality and reduction in cost to income ratio sequentially, albeit the last quarter was impacted by one-time family pension costs. One thing to keep in mind is that fresh slippages in retail have increased; however the major portion is emanating from the restructured book and the bank expects LGDs to be low as they are completely backed by secured mortgages. We are positive about the bank due to its strong granular liability franchise, cost of funds advantage, partnership with fintechs & digital initiatives, and visibility of growth."
Santosh Meena of Swastika Investmart went on to add that the ROA of Federal Bank share price is expected to rise due to the rising share of high-yielding retail loans.
"We believe that the bank is a serious candidate for rerating as the valuation remains cheap despite the aforementioned positives and current rise in the share price. The counter is coming out of long consolidation with a breakout of symmetrical triangle formation, which is leading to a strong bullish momentum. On immediate basis ₹110 is an horizontal resistance; above this, we can expect a rally towards ₹125 level. On the downside, ₹100-96 area will act as a strong demand zone at any correction."
Rakesh Jhunjhunwala shareholding
As per Federal Bank shareholding pattern for January to March 2022 quarter, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold stake in this south Indian bank. Jhunjhunwala couple own 2,10,00,000 or 1.01 per cent stake in the bank. However, in individual capacity Rakesh Jhunjhunwala holds 5,47,21,060 Federal Bank shares or 2.64 per cent stake in the bank. So, Jhunjhunwala couple together hold a total of 3.65 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.
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