Home / Markets / Stock Markets /  Rakesh Jhunjhunwala portfolio: Experts give 'buy' call on this banking stock
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Rakesh Jhunjhunwala portfolio: In April to June 2021 quarter, Big Bull Rakesh Jhunjhunwala raised his shareholding in Federal Bank by around 0.40 per cent, adding 75 lakh Federal Bank shares in his portfolio. However, the banking share has remained range-bound in 70 to 90 range for the last six months, failing to give much return to its shareholders. However, as per July 2021 shareholding of Federal Bank, Big Bull has gone with his conviction and kept his shareholding in Federal Bank unchanged. But, this Rakesh Jhunjhunwala holding stock is giving upside movement after strong Q2FY22 numbers.

According to stock market experts, Federal Bank has reported strong business momentum and hence its shares may give sharp upside moves in upcoming trade sessions.

Speaking on the fundamentals that may fuel this Rakesh Jhunjhunwala stock price rally; Jyoti Roy, DVP- Equity Strategist at Angel One Ltd said, "Federal Bank has reported strong business momentum for Q2FY22 as advances have registered a growth of 3.4 per cent QoQ to 1,37,3091 crore. Deposits have registered a growth of 2.5 per cent QoQ to 1,68,743 crore while CASA ratio improved by 135 bps QoQ to 36.16 per cent. Along with improvement in business momentum we also expect a sequential improvement in asset quality and decline in credit costs for Federal Bank."

Advising investors to buy Federal Bank shares; Sumeet Bagadia, Executive Director at Choice Broking said, "Federal Bank shares are looking strong on chart pattern and it may go up to 94 apiece in short-term. One can initiate buy in this Rakesh Jhunjhunwala portfolio stock at current levels maintaining stop loss at 80 levels."

However, Jyoti Roy of Angel One suggested stock market investors to hold this counter for some more time citing, "At current level federal Bank is trading at 0.9xFY23E adjusted Book Value, which provides comfort on the valuation front. Post the release of the business numbers we maintain our buy rating on Federal bank with a price target of 110."

Rakesh Jhunjhunwala holding in Federal Bank

As per July 2021 shareholding pattern of Federal Bank, Rakesh Jhunjhunwala holds 5,47,21,060 shares or 2.64 per cent stake in the private bank.

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

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