This bank stock of Rakesh Jhunjhunwala can rise up to 30%, claims brokerage firm

Multibagger Stock: The share price of Federal Bank, which has been in the portfolio of veteran investor Rakesh Jhunjhunwala since 2016, may rise up to 30% from current levels. Various brokerage firms believe so. The private bank has seen a strong recovery after the second wave of COVID-19, and has registered a year-on-year growth of 9.7% in Gross Advances, while the Total Deposit Base has grown by 10% during the same period.

The stock of Midcap Bank has been in Rakesh Jhunjhunwala’s portfolio since 2016. Federal Bank’s share price is currently trading at Rs 85 per share, which is 25% higher so far this year. Know what ratings have been given by various brokerage firms to this stock and what is the target price for it.

MK Global (Emkay Global): Rating– ‘buy‘

target price: Rs 110

the upside: 29.5%

Analysts at Emkay Global believe that Federal Bank is transforming itself into a next-generation private bank through its neo-banking tie-up in the assets, liabilities and payments businesses. The brokerage firm believes that this strategy will not only help Federal Bank to thrive in the new era of banking, but will also reduce the rising cost of doing business in the long run.

Axis Securities: Rating– ‘buy‘

target price: 100 Rupees

the upside: 18%

Federal Bank continues to be the favorite of Axis Securities. “We maintain a ‘Buy’ rating on the stock against the backdrop of attractive valuations and value it at 1.1x FY23E ABV to arrive at the target price of Rs 100,” the brokerage firm said.

Motilal Oswal: Rating– ‘buy‘

target price: Rs 110

upside down: 29.5%

Analysts at Oswal said, “We expect margin improvement in 2QFY22, supported by recovery in credit trends and lower cost of funds. We maintain our buy rating with a TP of Rs 110 per share.”

Big Bull Rakesh Jhunjhunwala holds 5.47 crore equity shares of Federal Bank. The veteran investor had increased his stake in the lender from 2.4% to 2.78% at the end of April-June quarter. At the current market price, Rakesh Jhunjhunwala’s stake in Federal Bank is more than Rs 465 crore.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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