Buy Federal Bank for a target price of Rs 100
Axis Direct has set a target price of Rs 100 on Federal Bank shares, against the current market price of Rs 80.85.
According to Axis Direct, Federal Bank’s transformation journey began with a stable franchise of granular deposits and a healthy NRI base in place. The brokerage believes that new initiatives undertaken in the past have gained momentum in the areas of neo-banking and high-yield product segments, which will lead to improved margins and better ROA.
âIt is gradually adding new avenues, namely FinTech partnerships and companies with high ROA such as CVs, micro-finance institutions and credit cards. Microfinance and credit cards). The main positives are a) an improved business mix, b) an adequate CAR, c) a granular liability franchise, and d) additional loans to higher-rated borrowers. high and sustainable returns on assets. We are maintaining a purchase with a target price of Rs 100 (1.1x FY23E ABV), âthe brokerage said.
Edelweiss Wealth Research predicts a target price of Rs 1,670 on Tech Mahindra stock compared to the current market price of Rs 1,515.
âWe expect Tech Mahindra to generate a CAGR of 13% in fiscal year 21-23E. An improved execution engine for cost management, targeting large transactions, talent management and converting to cash is expected to improve margins and further reduce finance costs, resulting in a 17% CAGR over the same period The brokerage said.
According to Edelweiss Wealth Research, Mahindra’s R&D laboratory (Makers Lab) and its partners have applied for a patent for the drug Covid-19, which will be the subject of trials and a development process over the course of 1 , Next 5 years. If successful, higher earnings could come from FY24E.
âAn improved execution engine to target large transactions, manage costs and receivables is expected to generate 17% CAGR PAT over the same period. Therefore, we are pricing the company ‘Tactical Buy’ with a target price of Rs 1,670, âsaid Edelweiss Wealth Research.
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