This Jhunjhunwala stock hits record high for second straight session, more upside likely?
The stock of the lender rose nearly 1% to a record high of Rs 220 on Wednesday against the previous close of Rs 218.75 on BSE.
- Jul 2, 2025,
- Updated Jul 2, 2025 2:22 PM IST
Federal Bank shares rose to their record high for the second straight session on Wednesday after board of the lender approved raising Rs 6,000 crore via debt and equity routes. The stock of the Kerela-based lender rose nearly 1% to a record high of Rs 220 on Wednesday against the previous close of Rs 218.75 on BSE.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3.60 crore shares or 1.48 per cent stake in the private lender at the end of March 2025 quarter. Shareholding data also showed 45 mutual funds owned 35.85% stake or 87.17 crore shares in the last quarter.
Market cap of the bank stood at Rs 53,346 crore. The banking stock has a one-year beta of 0.68, indicating low volatility during the period.
Total 2.94 lakh shares of the bank changed hands amounting to turnover of Rs 6.39 crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 68.7, signaling the stock is trading neither in the oversold nor in the overbought zone. Federal Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Kotak Equities has a price target of Rs 235 and a buy call on the banking stock. Earlier , Kotak assigned a price target of Rs 225 on the lender.
Kotak has marginally revised its FY2026 earnings downward to reflect the rate cycle.
"We are still not building the RoA expansion closer to the aspiration of management, which implies that the scope for re-rating is higher as we get confidence in the trends of the earnings print. Overall, valuations are attractive to remain positive on the bank," added Kotak Equities.
Brokerage Motilal Oswal has a buy call with a price target of Rs 250 on the banking stock.
The brokerage said it has demonstrated strong business growth and is rebalancing its portfolio toward medium- and high-yielding segments like LAP, used CVs, gold loans, and credit cards to drive profitability. "We estimate loan growth to sustain at ~17% CAGR over FY25-28E while bank maintains strong asset quality. Federal Bank remains one of our preferred BUY-rated ideas among mid-size private banks with a TP of INR250 (1.5x FY27E ABV)," said the brokerage.
Global brokerage UBS has a 'Buy' call on the banking stock. The brokerage has raised the price target to Rs 250 from the earlier Rs 180 on a favourable risk-reward. The brokerage expects a return on assets (RoA) accretion-based re-rating aided by near-term catalysts.
Federal Bank shares rose to their record high for the second straight session on Wednesday after board of the lender approved raising Rs 6,000 crore via debt and equity routes. The stock of the Kerela-based lender rose nearly 1% to a record high of Rs 220 on Wednesday against the previous close of Rs 218.75 on BSE.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3.60 crore shares or 1.48 per cent stake in the private lender at the end of March 2025 quarter. Shareholding data also showed 45 mutual funds owned 35.85% stake or 87.17 crore shares in the last quarter.
Market cap of the bank stood at Rs 53,346 crore. The banking stock has a one-year beta of 0.68, indicating low volatility during the period.
Total 2.94 lakh shares of the bank changed hands amounting to turnover of Rs 6.39 crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 68.7, signaling the stock is trading neither in the oversold nor in the overbought zone. Federal Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Kotak Equities has a price target of Rs 235 and a buy call on the banking stock. Earlier , Kotak assigned a price target of Rs 225 on the lender.
Kotak has marginally revised its FY2026 earnings downward to reflect the rate cycle.
"We are still not building the RoA expansion closer to the aspiration of management, which implies that the scope for re-rating is higher as we get confidence in the trends of the earnings print. Overall, valuations are attractive to remain positive on the bank," added Kotak Equities.
Brokerage Motilal Oswal has a buy call with a price target of Rs 250 on the banking stock.
The brokerage said it has demonstrated strong business growth and is rebalancing its portfolio toward medium- and high-yielding segments like LAP, used CVs, gold loans, and credit cards to drive profitability. "We estimate loan growth to sustain at ~17% CAGR over FY25-28E while bank maintains strong asset quality. Federal Bank remains one of our preferred BUY-rated ideas among mid-size private banks with a TP of INR250 (1.5x FY27E ABV)," said the brokerage.
Global brokerage UBS has a 'Buy' call on the banking stock. The brokerage has raised the price target to Rs 250 from the earlier Rs 180 on a favourable risk-reward. The brokerage expects a return on assets (RoA) accretion-based re-rating aided by near-term catalysts.