Antique Stock Broking maintains buy on Federal Bank, target price Rs 115
Buy Federal Bank Ltd. at a price target of Rs 115.0 .
The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 3433.75 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 1707.26 Crore (.00% of total assets). For the quarter ended 30-06-2019, the company has reported a consolidated interest income of Rs 2670.52 Crore, up 7.38 % from last quarter interest iIncome of Rs 2487.06 Crore and up 25.68 % from last year same quarter Interest Income of Rs 2124.89 crore. The bank has reported net profit after tax of Rs 373.71 crore in latest quarter.
The recent stock price correction of 26% from its peak reflects macro-economic uncertainty and possible challenges arising for financials and impact on financial performance may not be so severe, said Antique. The bank’s low yields on loans, absence from most of the troubled names (excluding two NBFCs and IL&FS), steady and contained trend in SME slippages and loan construct indicates that stress is likely to remain within manageable limits, the brokerage said.