Buy Federal Bank, target price Rs 230: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Federal Bank with a target price of Rs 230. The current market price of Federal Bank is Rs 192.4. Federal Bank, incorporated in the year 1931, is a banking company (having a market cap of Rs 46,686.31 Crore).

Federal Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest and Interest On Balances with RBI and Other Inter-Bank Funds for the year ending 31-Mar-2024.

Financials

The Bank has reported Standalone Non Performing Assets (Gross NPAs) at .00 % of total assets and Standalone Net Non Performing Assets (Net NPAs) at .00% of total assets for the quarter ending.

For the quarter ended 30-06-2024, the company has reported a Consolidated Total Income of Rs 7,663.65 Crore, up 7.20 % from last quarter Total Income of Rs 7149.12 Crore and up 25.82% from last year same quarter Total Income of Rs 6,091.08 Crore. The bank has reported net profit after tax of Rs 1,027.51 Crore in latest quarter.

Valuations

Growfast

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Motilal Oswal Financial Services estimate FB to achieve RoA of 1.3% and RoE of 15.2% by FY27, driven by improved margins and a continued shift toward higher-yielding products. As revenue growth outpaces cost growth, we expect the C/I ratio to decrease to ~50% by FY27, down from 54.5% in FY24.

Promoter/FII Holdings

FIIs owned 28.63% in the company and DIIs 44.96%.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.

Forrás: eredeti cikk

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