BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
Federal Bank Ltd.'s business growth continues to remain robust with no visible sign of slowing down so far. While margins could remain soft in H1 FY24, improving the share of higher-yielding products in the portfolio mix along with stabilising cost of funds are likely to aid margins in H2 FY24.
We remain confident in Federal Bank's ability to deliver a consistent return on asset of 1.3% despite margin pressures. The current valuations of 1.1 times September-24E adjusted book value are undemanding for an expected strong return on asset/return on equity delivery of 1.3%/15-16% over the medium term.
We re-iterate a 'Buy' on the stock with a target price of Rs 155/share, implying an upside of 22% from current market price.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.