Rakesh Jhunjhunwala Portfolio: Shares of Federal Bank, which is included in the portfolio of Rakesh Jhunjhunwala, who is called the Big Bull of the stock market, closed with gains on Monday despite the all-round fall in the market. This shows that the March quarter results of the bank have been in line with the expectations of the investors.
The bank’s profit in the March quarter grew by 13.1 percent. Rakesh Jhunjhunwala held 3.65 per cent stake in Federal Bank at the end of March quarter.
a look at the results
Federal Bank’s profit grew by 13.1 per cent to Rs 541 crore in the March quarter, as against Rs 478 crore in the corresponding quarter of the previous financial year. The income of the bank increased to Rs 3948.24 crore in the March quarter, from Rs 3843.87 crore in the corresponding quarter of the previous financial year.
At the same time, the bank’s net profit (standalone) increased by 18.8 percent to Rs 1889.82 crore in the entire financial year 2022, while the bank’s profit in the financial year 2021 was Rs 1590.30 crore.
Analysts’ opinion after the results
ICICI Securities: Buy
Target: Rs 125, Expected profit: 39.8 per cent
According to ICICI Securities, the bank’s performance in the fourth quarter despite the challenges related to Covid has been good, which shows the capabilities of its management. Federal Bank’s credit costs have come down in the fourth quarter and growth and profits have also been in the expected range. For the current financial year, the bank has set a target of 15 percent credit growth. ISRO Return on Assets (RoA) is more than 1 per cent. In such a situation, it has been advised to buy while maintaining the target price of Rs 125.
Motilal Oswal: Buy
Target: Rs 130, Expected profit: 45 per cent
Motilal Oswal says that the results of the March quarter of Federal Bank have been as per expectations. The brokerage said its net interest income (NII) has declined, but lower provisioning has helped it improve its profits. The brokerage house has also said that its business growth has been normal. However, it can be seen in the financial year 2023. A target of Rs 130 has been given for this.
LKP Securities: Buy
Target: Rs 116, Expected profit: 29.8 per cent
The brokerage house says that the earnings of Federal Bank have been in line with expectations. However, it has also expressed disappointment over the bank’s weak NII growth (7.4 per cent year-on-year). It has also been said that the credit quality of the bank is fine and there is no major hurdle.
However, all eyes will be on its business growth as the management has set a target of 15 per cent credit growth for FY13.
Rakesh Jhunjhunwala’s holding in Federal Bank
Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala both have stake in Federal Bank. Rakesh Jhunwala held 2.64 per cent stake in the bank and his wife 1.01 per cent at the end of March quarter. In this way, Jhunjhunwala has a total stake of 3.65 percent in Federal Bank, which is valued at about Rs 690 crore.
On Monday, Federal Bank’s shares closed at Rs 93.75 with a gain of 2.91 per cent on the NSE. However, a slight decline was seen in it on Tuesday.
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