Federal Bank could give investors 40%-50% upside in the next 12 months: Saurabh Mukherjea

In a chat with ET Now, Saurabh Mukherjea, Head of Equities, Ambit Capital, shares his views on Federal Bank.

Give me one name, one idea where you are ready to allocate disproportionate amount of money let us say 7% or 8% of your current portfolio?

I would look at Federal Bank very carefully, it is a good bank. It is over capitalised. It has built a lot of branches in the down turn, loan book is in decent shape. All of that you can get at 1.2 times book value, as it grows into its equity base I reckon a little rerate to 1.5 times combined that with around 20%-25% loan book growth. There is a good chance that Federal Bank could give investors between 40% and 50% upside in the next 12 months.