HDFC Securities issued Buy call on Federal Bank. The stock broker recommends buying stock for target of Rs 147 against current market price of Rs 127 in its report.

Commenting on investment rationale, the stock broker said, "Management hinted at stress in three large accounts worth Rs 3.5 billion. While the management does not expect any negative surprise in the current quarter, two of these ACs are expected to be restructured in 2HFY15. We factor in slippages of ~1.15% over FY15-16E vs. 1.2% in FY14. With a granular and well capitalized B/S, FB is one of the better placed banks, trading at attractive valuations. Loan growth to pick up in FY15, mgmt targets ~20-22% growth driven by SME/Retail loans. Asset quality performance expected to remain stable with no large corporate slippage in the current quarter. Three accounts of ~Rs 3.6bn are under the watch list, w/w couple of them expected to be restructured in 2HFY15. Margins to remain stable in range of 3.25-3.35%."

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