Buy This Private Sector Bank Stock, Likely To Surge 29% From CMP, Says Motilal Oswal

Motilal Oswal in its recent report has picked Federal Bank with a "Buy" call. The brokerage has assigned a target price of Rs 170 apiece to the stock. It sees a healthy return of up to 29% if the stock is purchased today at the current market price. Federal bank is one of India's leading private-sector banks. It is a midcap bank having a market valuation of Rs 28,028.63 crore. Check below to know more:

Federal Bank's Stock Performance, Returns, 52-Week Low/High, CMP

The stock of Federal Bank rallied 2.83%, currently trading at Rs 132.80 apiece on NSE. Today, it was opened at Rs 129.85 apiece.

The stock is currently trading near its 52 week high, which is Rs 143.40 apiece, recorded on 16 January 2023. The stock's 52 week low is Rs 82.50 apiece, recorded on 26 May 2022.

The stock gained 6.03% in 1 week, and 107% in 1 month, respectively. The stock gave 36.86% in 1 year, 54.54% in 3 years and 41.22% in 5 years, respectively.

Buy stock for a target price of Rs 170/share

According to Motilal Oswal, At its Analyst Day meet, Federal Bank (FB) reiterated its focus on delivering a healthy performance across all key parameters. The management aims to grow the loan book in the high teens, driven by digital and fintech partnerships. FB will continue to focus on growing its high-margin products by leveraging data analytics. The management also discussed growth opportunities and key levers for the ROA expansion. "We expect FB to deliver an earnings CAGR of 16% over FY23-25 with RoA/RoE of 1.3%/15.2% by FY25. We have a BUY rating on FB with a TP of INR170 (1.4x for Sep'24E ABV)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. 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 consult with certified experts before making any investment decision.