Federal Bank: “Higher margins and lower opex led to a 721bp betterment of the C/I ratio. Strong operating performance and benign credit cost (41bps) led to improved RoA. Asset quality was stable as slippages were in line with expectations," said Anand Rathi in a note.
With the formation of stress lower than earlier envisaged, recoveries in earnings would be better, and as per the brokerage, given the bank’s strong liability franchise and capitalisation, it is set to gain market share in the near term. Anand Rathi has maintained its positive view on Federal Bank shares with Buy rating and a target price of ₹120.
As per the shareholding pattern, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 2.64% and 1.01% stakes in the bank respectively as of March 2022.
Tata Motors: “We expect significant deleveraging for TTMT in FY23-24E driven by 1) improving FCF generation outlook at JLR, 2) continued market share gains and margin revival for domestic PV business, and 3) upcycle for domestic CV business post severe downturn in FY20-21," said Ambit in a note while maintaining its Buy rating on Tata Motors shares with a target price of ₹564.
“Benefit for the CV business is higher than the PV business given the higher steel content in trucks vs passenger vehicles. Rest of the increase in margin is led by operating leverage benefits on account of better-than-expected demand revival. We have kept our JLR volumes intact despite China Covid lockdowns hurting volumes in 1QFY23 as we believe JLR will be able to recoup volume/profitability loss in 1Q over the remaining quarters in FY23. Roll-over results in the remaining increase in target price," the note added.
According to the data available on the BSE, Rakesh Jhunjhunwala has 1.09% stake in Tata Motors as of June 2022, down from 1.18% stake he had held in the previous quarter of March 2022.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
