Federal Bank gains 2% brokerages maintain buy
Posted by :- Rupa Roy
Shares of Federal Bank rose 2.6% intraday to Rs 84.30 on Thursday, after foreign brokerage houses maintained buy rating on the stock after the company posted healthy Q2 earnings figures yesterday.
While Jefferies maintained buy rating after cutting target to Rs 120 from Rs 123, Citi too maintained buy call but cut the target to Rs 105 from Rs 120. Morgan Stanley has kept an underweight rating and cut the target price to Rs 80 from the earlier Rs 90 per share.
Helped by higher interest income and lower tax cost, the lender's consolidated net profit recorded at Rs 425.34 crore, 55% higher than Rs 266.04 crore earned during the same period a year ago.
Lender's gross non-performing assets (NPA) declined marginally to 3.07% and net NPAs fell to 1.59% of net advances on yearly basis, as of September 30, 2019.
Yesterday, Federal Bank shares dropped over 6% intarday and ended the day's trade 2.78% lower at Rs 82.15 on the BSE.