Top Pick 2023: This Banking Stock Gave Robust Performance In Q2FY23, Brokerage Assigns Buy Call
Federal Bank, a midcap bank, as its top banking stock for 2023.
The brokerage recommends " Buy" the stock with a target price of Rs 160/ share.
Considering the given target price, the stock has the potential to gain up to 17 % in 12 months brokerage recommend if " Buy" the stock it the stock is purchase target price of Currentd Price at the Current Market Price.
Thes, has a Market.
The Current Market Price ( CMP) of stock is Rs 137.65/ share on NSE, 2 .99 % up as compared to its previous close.
Its 52- week high, which was recorded on 15 December 2022 is Rs 142.20/ share and its 52- week low, which was recorded on 20 December 2021 is Rs 80.60/ share, respectively.
It has a market capitalisation of Rs 28,954.81 crore.
Investment Rationale
Buoyant Credit Growth Prospects: FB's credit growth witnessed continued growth momentum and remained robust in Q 2 FY 23 with advances growing at 19% YoY.
The bank is also keenly focused on neo- banking tie- ups to reach the country's under- banked population and expects these partnerships to contribute meaningfully to the overall business growth moving forward.
Outlook & Valuation
FB reported a stellar performance in Q 2 FY 23 with the highlight has been the multi- year high RoA of 1 .2%, which was led by healthy NIMs of 3 .3% ( multi- quarter high) and modest Opex growth with the C-I Ratio improving to sub- 50%.
"We maintain our BUY recommendation and arrive at a TP of Rs 160/ share, implying an upside of 20% from CMP," the brokerage has said.
Disclaimer
The stock has been picked from the brokerage report of Axis Securities.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt