Top Broking Firms Suggests "Buy" India's 2 Private Sector Banking Stocks, Sees Gains Up To 32%

Leading brokerage firms ICICI Securities and HDFC securities have assigned "Buy" on Axis Bank & Federal Bank, midcap and large-cap private sector banking stocks. The brokerage has assigned attractive target prices to the stocks, claiming robust upside from their current market price. Check the key details below:

Axis Bank - Stock Performance & Potential Upside

ICICI Securities recommended investors to buy the stock of Axis Bank with a target price of Rs 1,130 apiece, claims an upside of up to 32% from its current level. The stock is currently trading at Rs 856.35 apiece, up 1.24% as compared to its previous close. 

Its 52 week high recorded on 4 January 2023 is 970 apiece and 52 week low recorded on 23 June 2022 is Rs 618.25 apiece, respectively. Its market capitalisation is Rs 2,62,332 crore. 

The stock has given 16.18% positive return in 1 year, 24.72% in 3 years and 63.01% in 5 years, respectively. It is a large-cap banking stock. 

Axis Bank - Brokerage's Comments

ICICI Securities said, "As per management, RoE for Citi business acquisition comes to ~21.7% and hence this business would be RoE accretive. Acquisition PAT as per March 2022 disclosed numbers was Rs 8.0-8.42bn. Hence, it is estimated to be EPS & RoE accretive in CY24 (on an incremental basis). Maintain BUY with an unchanged target price of Rs1,130 assigning 2.3x FY24E book."

Federal Bank - Stock Performance & Potential Upside

HDFC Securities assigned a "Buy" on the stock of Federal Bank with a target price of Rs 175 apiece, claims 30% upside from its current level. The stock is currently trading at Rs 134.85 apiece, up 1.24% as compared to its previous close.

The stock recorded its 52 week high on 16 January 2023 at Rs 143.40 apiece and 52 week low on 26 May 2022 at Rs 82.50 apiece, respectively. Its market capitalisation is Rs 28,483.26 crore.

The stock surged 6.1% in 1 week. It gave 40.89% positive return in 1 year, 59.65% in 3 years and 43.51% in 5 years, respectively. It is a midcap banking stock.

Federal Bank - Brokerage's comments

HDFC Securities said, "FB appears to be on track to deliver its targeted RoA of 1.25% for FY23 with a further 5-10bps RoA accretion over the next couple of years, driven by higher risk-adjusted margins and better productivity. We marginally tweak our FY23E/FY24E earnings estimates to factor in these changes; maintain BUY, with a TP of INR175 (1.6x Sep-24 ABVPS)," the brokerage has said.

Disclaimer

The stocks have been picked from the brokerage reports. 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.