Federal Bank stock hits record high for third session, more legs to the rally?

Shares of Federal Bank hit their record high for the third straight session on Monday amid a rally in the broader market. Federal Bank stock rose to its record high of Rs 235.20 rising over 3% from the previous close of Rs 227.40. Market cap of the bank stood at Rs 57,602 crore. 

Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 5.90 crore shares or 2.42 per cent stake in the private lender at the end of September 2025 quarter.

The rally in the stock today came after the bank said Blackstone, through its affiliate Asia II Topco XIII, will buy a 9.99 per cent stake in the lender by investing Rs 6,196.51 crore. In the previous two sessions, the banking stock hit record highs of Rs 231.30 on October 23 and Rs 232.25 on October 24. 

Riyank Arora, technical analyst at Mehta Equities said, "Federal Bank continues to show steady momentum after a period of consolidation, supported by strong fundamentals and consistent earnings growth. The stock has formed a solid base around Rs 225, indicating accumulation at lower levels. Sustaining above Rs 230 could trigger a fresh rally towards Rs 245–Rs 255 in the near term. Outlook remains positive, with a buy-on-dips strategy favoured."

AR Ramachandran, SEBI registered Independent analyst says,"Federal Bank stock price is bullish on the Daily charts & also overbought with next resistance at Rs 243. Investors should be booking profits as a Daily close below support of Rs 227 could lead to a target of Rs 211 in the near term."

Gaurav Jani, Research Analyst - PL Capital has assigned a buy call on the stock with a price target of Rs 250. 

"Capital raise is a positive since it would strengthen the balance sheet and support growth. Also, it gives the bank leeway to plan for an inorganic acquisition. Due to a stronger balance sheet and increase in adjusted book value, we increase multiple slightly to 1.4x from 1.3x on Sep’27 ABV and raise TP to Rs 250 from Rs 235. Retain ‘BUY’," said PL Capital. 

Elara Capital has a price target of Rs 250 on the banking stock. 

"The stock has outperformed 7% in the past month vs the Index at 1.5%; it currently trades at 1.3x FY27E P/ABV, rendering the risk-reward favourable. However, the bank seems to have limited near-term triggers. We retain our Buy rating with a higher targtet price of Rs 250 (from Rs 230, as we roll to September’2027)," said the brokerage. 

Federal Bank clocked a 9.6 percent year-on-year fall in standalone net profit to Rs 955.3 crore for the July-September quarter (Q2 FY26). Net interest income (NII) climbed 5.4 percent on-year to a record Rs 2,495 crore, led by stable margins and steady loan growth. Federal Bank’s asset quality improved improved, with gross non-performing assets (GNPA) falling to 1.83 percent from 2.09 percent a year ago, and net NPAs at 0.48 percent against 0.57 percent.