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Brokerages remain bullish on Federal Bank. Motilal Oswal keeps a ‘buy’ rating with a Rs 250 target, citing strong Q2 results and improved net interest margins
Rekha Jhunjhunwala owns Rs 5.90 crore shares of Federal Bank. (News18 Hindi/File)
Rekha Jhunjhunwala, wife of the late veteran investor Rakesh Jhunjhunwala, saw substantial gains this Diwali, making a profit of Rs 67 crores in just minutes on Monday, October 20.
The share price of Federal Bank soared to a record high as soon as the market opened, greatly benefiting Rekha who holds a 2.42% stake in the bank.
Rekha Jhunjhunwala owns Rs 5.90 crore shares of Federal Bank. On Monday, the share price of Federal Bank surged by approximately 5.34%, reaching an all-time high of Rs 223.
This sharp increase in share price, up from the previous close of Rs 212.40, boosted the value of Jhunjhunwala’s investment by Rs 67 crores. Consequently, the market capitalisation of the bank reached Rs 53,976 crores.
What Caused The Surge?
The surge in Federal Bank’s shares was primarily driven by the bank’s excellent second-quarter results, which exceeded expectations and bolstered investor confidence.
As the market opened, a buying spree ensued, with millions of shares traded within minutes. Around 5.22 lakh shares were traded on the Bombay Stock Exchange (BSE), amounting to Rs 11.51 crores. Technically, Federal Bank’s stock is in a strong position.
The Relative Strength Index (RSI) of Federal Bank shares stands at 68.2, indicating that the shares are neither overbought nor oversold. Additionally, the share price is above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
In March 2025, Federal Bank’s shares had dipped to Rs 172.95, but they are now trading around 30% higher. Investors who bought shares at that time have enjoyed excellent returns, with significant gains for large investors like Rekha Jhunjhunwala.
What’s The Target Price For Federal Bank Shares?
Brokerage houses remain optimistic about Federal Bank. Motilal Oswal maintains a ‘buy’ rating and has set a target price of Rs 250, citing the bank’s strong second-quarter performance and improvements in net interest margin (NIM). Oswal projects a FY27E Return on Assets (RoA) of 1.19% and Return on Equity (RoE) of 12.8%.
Nuvama Brokerage has also set a target price of Rs 245, anticipating accelerated loan growth in the second half of FY26, stable asset quality, and further improvements in NIM. The bank is expected to perform well in its current account–savings account (CASA) segment and product diversification over the medium term.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
October 20, 2025, 14:25 IST
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