Rekha Jhunjhunwala & LIC-backed midcap stock hits 52-week high as UBS turns bullish – Do you own?

A midcap private sector lender reached its 52-week high on Monday after UBS maintained a “Buy” rating and raised its target price from Rs 250 to Rs 310, indicating a potential upside of up to 18 per cent from current levels.

The stock is held by prominent investors, including Rekha Jhunjhunwala and LIC.

The stock has delivered strong returns over different time frames, gaining 34.67 per cent over three months and 24 per cent over the past year, with a five-year surge of 292 per cent and a ten-year rise of 393 per cent.

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Investor interest remains robust. Rekha Jhunjhunwala increased her stake in the bank from 3.60 crore shares (1.48 per cent) in June 2025 to 5.90 crore shares (2.42 per cent) by September 2025.

Meanwhile, the Life Insurance Corporation of India (LIC) reduced its stake from 7.35 crore shares (3 per cent) to 4.26 crore shares (1.75 per cent) during the same period.

Federal Bank Share Price Today

The stock under discussion is Federal Bank, which is currently trading at Rs 264.90, up Rs 3.75 or 1.44 per cent from the previous close of Rs 261.15, on Monday. The stock opened at Rs 262.00, touched a high of Rs 265.00 and a low of Rs 260.90 during the session.

It has reached its 52-week high at Rs 265.00, while the 52-week low stands at Rs 172.95. The bank, part of the BSE 100 index, has a market capitalisation of Rs 65,160.91 crore and operates in the private sector banking industry.

Federal Bank Share Price Target

UBS highlighted that Federal Bank trades at a similar price-to-book value as peers (1.5x FY27 P/BV) but offers a superior return on equity. The brokerage expects stable credit costs, relatively subdued near-term loan growth due to balance sheet rationalisation, and gradual improvement in operating trends over the medium term.

Net interest margin (NIM) is expected to improve slightly, while fee income and operating efficiency are projected to support earnings growth.

Federal Bank Q2 Results

Federal Bank reported an 11 per cent rise in net profit to Rs 1,057 crore for the September quarter, up from Rs 954 crore in the same period last year.

Total income grew to Rs 7,541 crore from Rs 6,186 crore, and net interest income (NII) rose 15 per cent to Rs 2,367 crore, up from Rs 2,056 crore.