Pvt Sector Bank Stock Rallies 38% In 1-Year, Anand Rathi See 31% More Upside: Buy

Brokerage firm Anand Rathi has suggested investors to buy private sector bank stock, Federal Bank with a target price of Rs 180 apiece. If you buy the stock now at the current market price of Rs 137.95 apiece on BSE, you will potential receive 31% upside. The company has a market capitalisation of Rs 29,159.30 crore. Check details below:

1. Federal Bank Stock Performance

The last trading price of the stock is Rs 137.95 apiece with an intraday fall of 1.64% on BSE. The stock's 52-week high is Rs 143.35 apiece and 52-week low is Rs 82.50 apiece, respectively.

2. Federal Bank Return

The stock has rallied 2% in last 1-week, 5% in last 3-months, 40% in last 1-month, and 38% in last 1-year. It has given 51% return in last 3-years, and 31% return in last 5-years.

3. Valuation

According to Anand Rathi, "The strong operating performance and benign credit cost (38bps) led to the better RoA. Asset quality was stable. Given the bank's strong liability franchise and capitalisation, it is set to gain market share in the near term. We maintain our positive view on it, with a Rs180 target price, valuing it at 1.3x P/ABV on its FY25e book."

Key Risks: Lumpy slippages from the corporate book.

4. About Federal Bank

Federal Bank has been in the service of the nation since pre-Independence times. Incorporated on April 23, 1931, as the Travancore Federal Bank Limited, Nedumpuram under the Travancore Companies Regulation, 1916, the Bank was renamed as The Federal Bank Limited in December 1949. It is one of the major Indian commercial banks in the private sector headquartered at Aluva.

Disclaimer

The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.