Rekha jhunjhunwala portfolio: In the outcry in the global market, when the value of shares of many legendary companies came down half, the banking share of Rekha Jhunjhunwala’s portfolio had fallen only 20%. Now it has recovered to a great extent and is now less than 4% below record high. Now, if we talk further, Motilal Oswal increased its target price by more than 8%. Currently, it is at a price of ₹ 208.45 on BSE and according to Motilal Oswal, it can climb about 20% from the current level.
According to the March quarter data, Rekha Jhunjhunwala has 3,60,30,060 shares which is equivalent to its 1.5% stake. Rekha Jhunjhunwala’s stake in Federal Bank was 1.4% in the December quarter, ie she has increased her holding.
Why is brokerage fid on Federal Bank?
Domestic brokerage firm Motilal Oswal says that the bank’s business growth is quite strong. To increase profitability, it is shifting its portfolio to LAP (Lone Against Property), old commercial vails, gold loans and credit cards such as media and high yield segment. The brokerage firm estimates that the growth of bank deposits between financial year 2025-28 will increase at a compound speed of 15.1% annually and by financial year 2028, the CASA ratio can improve 34-35%.
The brokerage firm says that the dull of high funding costs, CASA (current account savings account) on the net interest margin and most of the assets’ most of the assets may show pressure in the Near Term. However, the Federal Bank has targeted the Net Interest Margin (NIM) of 3.5% by financial year 2028 in the medium term. Apart from this, the ratio of cost and income due to Neo, Project Flight and Technical Upgrade is expected to remain at high level of 53-55% in the Near Term but due to increase in scale and productivity, it is highly expected to improve it. For all these reasons, the brokerage firm has given a rating of purchases at a target price of ₹ 250.
How was the move of shares in a year?
Federal Bank shares were at ₹ 216.90 on 5 December 2024 last year, which is a record high level for its shares. It fell 20.26% in 3 months from this record high to ₹ 172.95 on 3 March 2025, which is a record low of one year for its shares. At this record low, it has been handled and recovered 20.53% but still it is 3.90% downside from record high.
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