Rekha Jhunjhunwala-Backed Bank Stock Delivers 266% Return In 5 Years — Should You Buy Now?

A bank stock backed by veteran investor Rekha Jhunjhunwala has been quietly gaining ground, delivering strong returns over the years and catching the attention of market watchers.

With steady profit growth, improved asset quality, and a bullish outlook from top brokerages, this lender is emerging as a solid contender in the private banking space.

The stock under discussion is Federal Bank, a key stock in the portfolio of investor Rekha Jhunjhunwala. According to BSE data, Jhunjhunwala holds 3.60 crore shares of the bank, translating to a 1.48% stake, showing her confidence in the lender’s long-term potential.

Federal Bank Share Price Movement

Currently trading at Rs 206.90, the bank’s stock has delivered an impressive 190.88% return over the last 10 years. Over the past five years, it has surged 266.52%, and in the last three years, it is up by nearly 138%.

Even on a shorter-term basis, it has shown resilience, with a 17.29% gain over the past year and a 10.52% rise in the last three months.

The stock touched a 52-week high of Rs 216.90 and has a strong market cap of Rs 50,814 crore, making it a part of the BSE 100 index.

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Federal Bank Q4 Results 2025

Financially, Federal Bank posted a consolidated net profit of Rs 1,091 crore for the March quarter, a rise of 12.37% year-on-year, aided by robust non-interest income. On a standalone basis, Q4 profit came in at Rs 1,030 crore, compared to Rs 906 crore in the same period last year.

While net interest income grew 8% to Rs 2,377 crore, non-interest income saw a sharp 33% increase to Rs 1,006 crore—its highest ever.

Despite a slight narrowing of net interest margin to 3.12% from 3.21%, the bank’s asset quality improved. The gross NPA ratio eased to 1.84%, down from 1.94% in the previous quarter. Capital adequacy remains strong, with overall CAR above 16% and core Tier-I capital over 15%.

Should You Invest?

Kotak Institutional Equities, in a recent note, maintained its BUY rating on the stock and revised the fair value target to Rs 235. The brokerage cited multiple positive changes underway at the bank, including new revenue streams in retail, MSME, and corporate segments; a focus on improving margins; and cost control.

Kotak noted that these shifts are achievable with minimal disruption and could lead to further re-rating of the stock.

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