Shares of Federal Bank hit a record high today amid a massive market crash. Shares of Federal Bank rose to a record high of Rs 207.50 on Monday, compared to the previous close of Rs 204.25 on the BSE. It later closed on a flat note at Rs 204.15. The stock fell to a 52-week low of Rs 139.45 on January 23, 2024. Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3.45 crore shares or 1.42 per cent stake in the private lender at the end of the September 2024 quarter.

The market capitalization of the bank on Monday stood at Rs 50.051 billion. Banking stocks have a one-year beta of 1, indicating average volatility over the period.

A total of 9.99 lakh shares of the bank changed hands, resulting in a turnover of Rs 20.48 billion on BSE.

From a technical perspective, the stock’s relative strength index (RSI) stands at 64.6, which signals that the stock is trading neither in the oversold nor oversold zone. Federal Bank shares are trading above the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Nuvama set a price target of Rs 235 after its second-quarter earnings.

“Slippage remained stable quarter-on-quarter at 0.9% of delinquent loans. Slippage in Ağrı increased 24% quarter-on-quarter, slippage in COB fell sharply while slippage in BUB remained flat. Credit cost remained low at 28 basis points.” While GNP increased by 3% quarter on quarter, the GNP ratio showed a marginal decline. PCR increased from 72% to 73% quarter on quarter, due to the Bank’s higher share of lending in MFI, maintaining healthy asset quality. “Given the strong asset quality and healthy earnings growth, Management is confident that it can raise sufficient liabilities to fund growth,” the broker said.

Axis Securities has a buy call on the banking stocks with a target price of Rs 214-222. Stop Loss can be fixed at Rs 190.

“Federal Bank is trending within a medium-term ascending channel on the weekly chart, recently finding support in the lower band and now moving towards the upper band of the channel. It broke above a small descending triangle pattern at Rs 197. The ascending channel indicates continuation of the medium-term uptrend.” Volume activity decreased during the pattern formation but increased significantly during the breakout, indicating that at that point market participants were bullish and the baseline was generating a buy signal.

Centrum Broking has a buy call on the stock with a price target of Rs 250.

“With the management transition, investors set clear priorities: 1) improve NIMs, 2) reduce
operating expenses and 3) improving the overall return profile. The new leadership stated that they will outline their strategic approach to these areas by the next quarter. We welcome these developments very positively. Additionally, we move to 1HFY27E and continue to set 1.5x P/B to achieve our revised target price of Rs 250. Maintain BUY for a 35% upside from current levels,” Centrum Broking said.

Dolat Capital has an accumulated call on Federal Bank with a price target of Rs 215.

“New NPA growth across divisions was stable. Despite some increase in MFI/PL defaults, better-than-expected trends in secured books offset this impact. Slippage should remain within current range by bank except for marginal increase. Asset quality trends were better than expected, but higher Seasonality of new portfolios with returns remains a key issue to watch and we maintain a ‘Accumulate’ rating on the bank with an unrevised price target of Rs 215, valuing the bank at 1.4x Sep 26E P/ABV against 1.3 RoA/RoE. 15,” said the broker.

The bank reported a 10.8% increase in net profit to 1056.7 rupees in the second quarter compared to 954 billion rupees in the same quarter last year.

Total revenue increased to Rs 7.541 billion in the second quarter compared to Rs 6.186 billion in the same quarter last year. The bank reported interest income of Rs 6.577 billion in the quarter; This is higher than Rs 5.455 billion in the same period the previous year.