Federal Bank’s June quarter numbers have been strong. From deposits, advances to credit growth was better. The stock has also recently broken out of multiple resistance levels.
Top Banking Stocks To Buy: If you are thinking of earning profit by investing in any stock related to the banking sector, then you can keep an eye on Federal Bank. The bank recently broke its multiple resistance level of 93. At the same time, according to the latest update of the June quarter, there has been good growth in the advance, deposit and retail loan of the bank. The CASA trend has also been stable. Now there is a possibility of bullishness in short term and long term. Federal Bank is the top banking stock of the market’s veteran investor Rakesh Jhunjhunvarala in terms of value. He holds 3.7 per cent stake in the bank and currently holds 75,721,060 shares worth Rs 734 crore.
short term target
According to brokerage house Axis Securities, Federal Bank has recently broken out of Multiple Resistance Zone 93 on the daily chart. The breakout has happened with significant volume, which is an indication of increasing participation in the stock. The stock has managed to stay above all its important moving averages. This month the stock can show the level of 101-105. The brokerage says that any fall should be invested in it. The level of Rs 94-92 is better for entry and put a stop loss at Rs 89. The stock has a margin of 13% return within 1 month.
long term target
Brokerage house Motilal Oswal has set a target of Rs 130 for the long term in the stock of Federal Bank. In terms of the current price of Rs 97, it can give a return of about 34 percent. The brokerage house says that Federal Bank has presented better numbers in the June quarter. The advance of the bank has increased by 16.3 percent year-on-year to 1.5 lakh crore. There was also a growth of 4.6 percent on a quarterly basis. According to the internal classification, the retail credit growth of the bank has been 16.7 percent on a year-on-year basis.
There was a growth of 15.8 percent in the wholesale book of the bank. Total deposits grew 8.2 per cent (+1% QoQ) year-on-year to Rs 1.83 lakh crore. While overall customer deposits grew by 9.1 percent. CASA has grown by 15 per cent year-on-year. The CASA ratio, however, declined by 10bp on a quarterly basis and has come down to 36.84 per cent. The growth in term deposits was 6.1 per cent. The share of retail deposits has improved from 93 per cent to 94 per cent on a year-on-year basis.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
