Arihant Capital is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 126 in its research report dated May 06, 2019.
Arihant Capital's research report on Federal Bank
Federal Bank reported a strong performance during Q4FY19 with 18% YoY growth in advances leading to 17.5% YoY growth in NII. Earnings growth for the quarter was higher at 163% YoY to Rs 382 cr, largely due to sharp decline in provisions. Moderate increase in OPEX and 21% rise in total income, led to 28% jump in operating profit. Due to sharp decline in slippages, GNPA/NNPA witnessed an improvement of 22bps/24 bps on QoQ basis. NIM was stable at 3.20% an expected to remain in the same range going forward. OPEX grew by 14% YoY with CI ratio improving by ~280 bps to 50%. RoA for the quarter came in at 1.02% as per the management target.
Outlook
Given by, improvement in operating performance and compelling valuation we maintain our Buy rating with a revised target price of Rs 126.
For all recommendations report, click here
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