Rakesh Jhunjhunwala portfolio: During the April to June 2021 quarter, Big Bull Rakesh Jhunjhunwala increased its stake in Federal Bank by approximately 0.40%, adding 75 lakh Federal Bank shares to its portfolio. However, the banking share remained limited in ??70 to ??90 for the past six months, failing to give much return to its shareholders. However, according to Federal Bank’s July 2021 shareholding, Big Bull went with its conviction and kept its stake in Federal Bank unchanged. But, this share held by Rakesh Jhunjhunwala gives a bullish movement after the good figures of T2FY22.
According to stock market experts, the Federal Bank has reported strong trading momentum and as a result, its shares could see strong rises in the coming trading sessions.
Speaking on the fundamentals that could fuel this rise in Rakesh Jhunjhunwala share prices; Jyoti Roy, DVP- Equity Strategist at Angel One Ltd, said: âThe Federal Bank reported strong business momentum for the second quarter of fiscal 22, with advancements growing 3.4% quarter-on-quarter for ??1,37,3091 crore. Deposits grew 2.5% QoQ to 1,68743 crore while the CASA ratio improved from 135 bps QoQ to 36.16%. Along with improving business momentum, we also expect a sequential improvement in asset quality and lower credit costs for the Federal Bank. “
Advising investors to buy shares of the Federal Bank; Sumeet Bagadia, Executive Director of Choice Broking, said: âFederal Bank stocks look strong on the chart model and they could go as high as ??94 each in the short term. We can initiate the purchase of this share of the Rakesh Jhunjhunwala portfolio at current levels by maintaining the stop loss at ??80 levels. “
However, Angel One’s Jyoti Roy suggested that stock investors keep this meter a bit longer, citing: âAt current levels, the Federal Bank is trading at 0.9xFY23E adjusted book value, which is reassuring on the financial front. Release the company’s figures publication, we are maintaining our buy rating on the Federal Bank with a target price of ??110. “
Rakesh Jhunjhunwala owns stake in Federal Bank
According to the Federal Bank’s July 2021 shareholding model, Rakesh Jhunjhunwala owns 5,47 21,060 shares or 2.64% of the capital of the private bank.
Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, not Mint.
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