Accumulate Federal Bank; target of Rs 142: Geojit Research
Geojit Research recommended accumulate rating on Federal Bank with a target price of Rs 142 in its research report dated October 18, 2017.
Geojit Research's research report on Federal Bank
PAT grew 31% YoY in Q2FY18, better than estimated supported by robust 24% YoY growth in Net Interest Income (NII). Loan book grew 25%YoY with strong growth across Retail, SME and Corporate segments, while deposits grew 13% YoY. Asset quality was stable with GNPA and NNPA at 2.39% & 1.32% respectively, and we factor 52bps improvement in GNPA by FY19E. Robust retail network and market share gains across segments will lead to 20% CAGR in loan book and 36% CAGR in earnings over FY17-19E.
Outlook
On robust operating performance and healthy earnings outlook we increase our valuation to 2.1x FY19E adjusted BV and recommend Accumulate with a revised target price of Rs 142.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
Stumps 
