Federal Bank shares have delivered negative returns in the short term. The Jhunjhunwala portfolio stock clocked negative returns in period up to a year except in six months when it climbed 8.31%. The stock, which has zero promoter holding is oversold on charts with a RSI of 29.6 indicating more sellers against buyers for the stock.
Federal Bank stock displays weak trend, trading below all its short-term and long-term moving averages.
However, the multibagger stock has delivered 252% returns in five years and risen 224% in ten years. The stock touched its record high of Rs 220 on July 2, 2025.
Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 3.60 crore shares or 1.48 per cent stake in the private lender at the end of June 2025 quarter. Shareholding data also showed 41 mutual funds owned 35.39% stake or 86.10 crore shares in the last quarter.
In the current session, Federal Bank shares were trading on a flat note at Rs 191.95 on BSE. Market cap of the bank stood at Rs 47,177 crore.
Total 7987 shares of the bank changed hands amounting to turnover of Rs 15.33 lakh on BSE.
Centrum Broking has a price target of Rs 210 on the private lender.
Axis Securities has a price target of Rs 240 on the stock, Rs 20 higher than the record high reache din July.
The bank’s strategy re-orientation under the new management is seeing green shoots across most key metrics. The brokerage expects RoA/RoE to improve between 1.3-1.4%/13-15% over the FY27-28E, while navigating near-term headwinds.
“This improvement is likely to be driven by (1) Healthy risk-adjusted credit growth, (2) Margin improvement levers playing out with portfolio mix shift towards better-yielding segments and lower CoF, (3) Strong deposit franchise with improved CASA Mix, (4) Strengthened Fee income profile, and (5) Stable asset quality metrics, keeping credit costs under control. We believe the risk-reward is favourable at current valuations,” said Axis Securities.
In a conference note, Emkay Global said the bank asserts that its transformation journey is progressing at a strong pace, with a strategic shift in asset mix toward high-yielding segments like retail and SME, alongside a structurally stronger
CASA profile as seen in Q1.
The brokerage has a price target of Rs 240 with a BUY call on the stock (based on 1.3x Jun-27E ABV and subsidiaryfs valuation at Rs 12 per share), considering the healthy improvement in return on assets to 1.2-1.3% over FY27-28E, credible management among SMID banks, and reasonable valuations.
The management has guided for a loan growth at 1.2 times nominal GDP (revised from 1.2-1.5x earlier), reflecting a sharper focus on balancing risk and margin outcomes, added Emkay.
Kotak Equities is bullish on the bank with a price target of Rs 235. The brokerage has marginally revised its FY2026 earnings downward to reflect the rate cycle.
“We are still not building the RoA expansion closer to the aspiration of management, which implies that the scope for re-rating is higher as we get confidence in the trends of the earnings print. Overall, valuations are attractive to remain positive on the bank,” added Kotak Equities.
Brokerage Motilal Oswal has a price target of Rs 250 on the banking stock.
The bank has demonstrated strong business growth and is rebalancing its portfolio toward medium- and high-yielding segments like LAP, used CVs, gold loans, and credit cards to drive profitability.
“We estimate loan growth to sustain at ~17% CAGR over FY25-28E while bank maintains strong asset quality. Federal Bank remains one of our preferred BUY-rated ideas among mid-size private banks with a TP of Rs 250 (1.5x FY27E ABV),” said the brokerage.