Axis Securities Reiterate "Buy" Recommendation On Midcap Banking Stock, 
Sees 27% Upside

Axis Securities Reiterate " Buy" Recommendation On Midcap Banking Stock, Sees 27% Upside { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

Axis Securities has come up with a stock- to- buy idea from the banking sector, which is Federal Bank is a midcap banking stock having a market capitalisation is Rs 28,377.53 crore.

The stock on NSE last traded at Rs 134.20/ share, up 0 .64% as compared to its previous close of Rs 133.35 apiece. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

The stock's 52 week high is Rs 143.40 apiece and 52 week low is Rs 82.50 apiece, respectively.

The stock gave 5 .54% positive return in 1 week. It has given 0 .6% positive return in 1 month and 0 .71% in 3 months, respectively.

It has given 40 .16% positive return in 1 year, 58 .82% in 3 years and 42 .77% in 5 years, respectively.

On Axis Securities, FB continues to progress well on most key operational metrics and remains well- poised to deliver a healthy RoA/ RoE of 1.2 - 1 .3%/ 14 - 15% over the medium term. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

This would be driven by i) Robust credit growth with an improving share of the high- yielding products, ii) Granular liability franchise with a higher share of retail- dominated deposits and healthy CASA Ratio,

Valuation & Recommendation

Axis Securities said, " The stock currently trades at an attractive valuation of 1 .1 x Sep' 24 E ABV. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

We maintain our target multiple of 1 .5 x Sep' 24 E ABV to arrive at a target price of Rs 170/ share, implying an upside of 32% from the CMP.

We reiterate our BUY recommendation on the stock."

The stock has been picked from the brokerage report of Axis Securities. { "selector": ".imagebox-wrapper", "duration": "4800ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.144)"] } }

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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt View more