Buy Federal Bank, target price Rs 64: Yes Securities

Yes Securities has given a buy rating to Federal Bank with a target price of Rs 64. The share price moved up by 0.62 per cent from its previous close of Rs 56.55. The stock’s last traded price is Rs 56.90.

Federal Bank Ltd., incorporated in the year 1931, is a banking company (having a market cap of Rs 11379.62 Crore).

Financials
The Bank reported a Gross Non Performing Assets (Gross NPAs) of Rs 3591.72 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 1249.85 Crore (.00% of total assets).


For the quarter ended 30-09-2020, the company reported a Consolidated Interest Income of Rs 2853.76 Crore, up .92 % from last quarter Interest Income of Rs 2827.74 Crore and up 4.88 % from last year same quarter Interest Income of Rs 2720.87 Crore. The bank reported net profit after tax of Rs 315.70 Crore in latest quarter.

Investment Rationale
Post prior week’s pause, the stock has regained momentum on the upside this week. Recent up move has surpassed the hurdle zone near Rs 54, suggesting a shift of range on the upside. The stock is down for the consecutive third year. However, the short-term chart suggests recovery towards the Rs 64-65 zone.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 31 per cent, DIIs 37.2 per cent and public and others 31.9 per cent