Home / Markets / Stock Markets /  Rakesh Jhunjhunwala portfolio: Experts recommend buy on this banking stock
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Rakesh Jhunjhunwala portfolio: Driven by strong traction in corporate, Rakesh Jhunjhunwala holding company Federal Bank has clocked better-than-expected year-on-year (YoY) growth of 12 per cent and quarter-on-quarter (QoQ) growth of 5 per cent. So, despite higher operating expenses or opex, Federal Bank has managed to beat the market estimates and the stock is looking bullish from both technical and fundamental perspective.

According to stock market experts, Federal Bank shares are poised to give breakout at 102 on chart pattern. Once it manages to break this hurdle it will soon go up to 115 to 120 per share levels in short term. They said that Federal Bank has reported PAT (Propfit After Tax) at 5.2 billion in Q3FY22, which is slightly higher from the estimated PAT of 4.9 billion by the market experts. They went on to add that once Federal Bank share price gives breakdown at 102 levels, it may soon go up to 144 per share levels in next 2-3 months.

Speaking on Q3 numbers of Federal Bank; Anand Dama, Senior Research Analyst at Emkay Global Financial Services Ltd said, "Federal Bank clocked better-than-expected growth at 12 per cent yoy and 5 per cent qoq, driven by strong traction in corporate. Retail growth was relatively moderate due to Federal Bank's conscious stance on the Personal Loan book, but mortgages/car loan showed better growth trends. Federal Bank has hired senior personnel to scale up its CV business. It expects NIM to improve further by 6-7 bps on better growth/portfolio mix and lower interest reversals." Dama expected improvement in Return on Asset (RoA) and Return on Equity (RoE) on net interest margins, fees and lower costs.

Speaking on Federal Bank share price target for short term; Sumeet Bagadia, Executive Director at Choice Broking said, "This Rakesh Jhunjhunwala may give breakout at 102 on closing basis. After this breakout, the stock may soon go up to 115 to 120 levels in short term. So, my advice to short term investors is to buy this banking counter at current levels for immediate target of 105. But, one can hold the counter for up to 120 short term target maintaining stop loss at 90 apiece levels."

Suggesting positional investors to buy and hold Federal Bank shares for 2-3 months; Ravi Singhal, Vice Chairman at GCL Securities said, "Once this Rakesh Jhunjhunwala portfolio stock gives breakout at 102 per share levels on closing basis, it would become highly bullish and may go up to 144 levels in next 2-3 months. So, my suggestion to positional investors is to buy this south Indian bank at current levels and hold it for next 2-3 month."

Rakesh Jhunjhunwala shareholding in Federal Bank

According to Federal Bank shareholding pattern for Q3FY22, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have investments in this south Indian bank. Rakesh Jhunjhunwala holds 5,47,21,060 shares or 2.64 per cent stake whereas Rekha Jhunjhunwala holds 2,10,00,000 Federal Bank shares, which is 1.01 per cent of the total issued paid-up capital of the bank.

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

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