Stock To Buy:
If you are looking for quality stock for better returns in the stock market, you can keep an eye on Federal Bank stock.
After the excellent quarterly results, market experts are bullish on this private sector banking stock and are advising to buy it.
The bank has a bumper profit of 54% in the December quarter. Federal Bank posted a profit of ₹804 crores in the third quarter ended December 2022 (Q3FY23).
The bank had earned a net profit of ₹522 crores in the same quarter a year ago. Federal bank shares are trading up 1% at Rs 141.70 in early trade today.
What are quarterly figures?
Private sector Federal Bank’s profit in the third quarter of the current financial year ending December 2022 increased by 54 percent to Rs 804 crore.
The bank earned a net profit of Rs 522 crore in the December quarter of the last financial year, 2021-22.
Federal Bank said in a communication sent to the stock exchanges on Monday that its total income during the December quarter also increased to Rs 4,967 crore. This was Rs 3,927 crore in the same quarter a year ago.
What do experts say?
The brokerage house has reiterated the ‘BUY’ rating. Federal Bank is a top mid-cap stock.
The brokerage believes Federal can deliver a high ROA of 1.4% through FY25E versus an average ROA of 0.9% in the last five years.
Edelweiss expects the bank to provide a robust EPS CAGR of 28% over FY22–25E. The brokerage’s target price on the bank stock has been revised to ₹180 per share. Earlier it was ₹160.
Antique Stock Broking said we revised our earnings estimates for FY23-25E by 2%-5%, respectively. Also, Federal Bank’s stock target has been raised to ₹170 from ₹160, and advised to buy it.
