Buy Federal Bank, target price Rs 180: Anand Rathi

Anand Rathi has buy call on Federal Bank with a target price of Rs 180.The current market price of Federal Bank is Rs 138.95.

Federal Bank, incorporated in the year 1931, is a banking company (having a market cap of Rs 29670.00 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-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 5262.58 Crore, up 7.69 % from last quarter Total Income of Rs 4886.58 Crore and up 27.57 % from last year same quarter Total Income of Rs 4125.30 Crore. The bank has reported net profit after tax of Rs 843.25 Crore in latest quarter.

Investment Rationale
Given the bank’s strong liability franchise and capitalisation, the brokerage sees the bank to gain market share in the near term. The brokerage maintains its positive view on it, with a Rs 180 target price, valuing it at 1.3x P/ABV on its FY25e book.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 26.2 per cent, DIIs 42.12 per cent.