Buy Federal Bank; target of Rs 134: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Federal Bank has recommended buy rating on the stock with a target price of Rs 134 in its research report dated January 15, 2018.

Broker Research

January 23, 2018 / 12:08 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Federal Bank

FB’s operational performance were in line though earnings were slightly below estimates (Rs2.61bn v/s PLe: Rs2.71bn) on back of lower treasury gains. Bank saw slippgaes from both corporate & retail, with retail being led by one‐off slippages from educational loans leading to slight deterioration in asset quality. Loan growth continued to be strong at 22% YoY and bank also saw decent CASA accretion. Bank continues to invest in technology initiatives, improving feet on street & turnaround time, which will help on better loan growth & operating leverage to play out on ratios.

Outlook
We have tweaked our earnings estimates slightly on lower other income & higher slippages and hence revised our TP lower to Rs134 (from Rs144) but see return ratios improving gradually keeping our “BUY” call intact.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.