Jhunjhunwala portfolio stock has clocked negative returns in a year, can it breach record high? 

Federal Bank shares have delivered negative returns in a year. The Jhunjhunwala portfolio stock is down 3.3% in a year and lost 2% this year. However, the multibagger stock has delivered 272% returns in five years and clocked 78% in three years. The stock touched its record high of Rs 220 on July 2, 2025. 

Federal Bank stock is in a weak zone trading below all its short-term and long-term moving averages. 

Its RSI lies at 31.6, near the oversold zone. 

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 previous session, Federal Bank shares closed on a flat note at Rs 195.95 on BSE. Market cap of the bank stood at Rs 48,147 crore. 

Total 0.96 lakh shares of the bank changed hands amounting to turnover of Rs 1.87 crore on BSE.

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 assigned a price target of Rs . 240 with a BUY call on the stock (based on 1.3x Jun-27E ABV and subsidiaryfs 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.