Federal Bank shares reached a record high of ₹207.80 on Thursday, continuing a strong performance this week after hitting ₹207.50 earlier. This marks a notable rebound from the 52-week low of ₹139.45 in January 2024. The bank’s market capitalization stood at ₹50,300 crore as of Thursday, with 1.5 lakh shares exchanged, resulting in a turnover of ₹3.09 crore on the BSE.
Technically, the stock is in a positive trend, trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The Relative Strength Index (RSI) is at 65.2, indicating that the stock is neither overbought nor oversold.
Several brokerages have provided positive outlooks for Federal Bank:
- Axis Securities has set a target price of ₹214-222, citing a continued medium-term uptrend with volume activity increasing at key breakout points.
- Centrum Broking has revised its target to ₹250, driven by expectations for improved net interest margins (NIMs), reduced operating expenses, and higher returns under the new leadership.
- Nuvama maintains a buy call with a target of ₹235, highlighting strong asset quality and healthy earnings growth.
- HDFC Securities has assigned a target of ₹224-240, with expectations of improved return on assets (RoA) and return on equity (RoE) by FY27.
For Q2 FY25, Federal Bank reported a 10.8% increase in net profit, reaching ₹1,056.7 crore, compared to ₹954 crore in the same quarter last year. Total income grew to ₹7,541 crore from ₹6,186 crore a year ago, driven by a rise in interest income to ₹6,577 crore, up from ₹5,455 crore in the previous year.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.
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