⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FEDERALBNK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | FEDERALBNK | Market Cap | 66,815 Cr. | Current Price | 271 ₹ | High / Low | 302 ₹ |
| Stock P/E | 17.2 | Book Value | 142 ₹ | Dividend Yield | 0.44 % | ROCE | 6.95 % |
| ROE | 13.0 % | Face Value | 2.00 ₹ | DMA 50 | 277 ₹ | DMA 200 | 244 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 1.39 % | PAT Qtr | 1,041 Cr. | PAT Prev Qtr | 955 Cr. |
| RSI | 42.8 | MACD | -4.98 | Volume | 72,01,224 | Avg Vol 1Wk | 98,49,538 |
| Low price | 181 ₹ | High price | 302 ₹ | PEG Ratio | 0.59 | Debt to equity | 8.75 |
| 52w Index | 74.8 % | Qtr Profit Var | 8.98 % | EPS | 15.8 ₹ | Industry PE | 14.8 |
📊 Core Financials
- Revenue growth: PAT improved to 1,041 Cr. from 955 Cr., showing steady growth
- Profit margins: EPS at 15.8 ₹, ROE 13.0%, ROCE 6.95% — moderate efficiency
- Debt ratios: Debt-to-equity at 8.75, typical for banking sector but high compared to non-financial peers
- Cash flows: Strong profitability supports healthy cash generation
- Return metrics: ROE above industry average, ROCE moderate
💹 Valuation Indicators
- P/E Ratio: 17.2, slightly above industry PE of 14.8, fair valuation
- P/B Ratio: ~1.91 (271 ₹ / 142 ₹), reasonable
- PEG Ratio: 0.59, attractive and suggests undervaluation relative to growth
- Intrinsic Value: Current price appears fairly valued with potential upside
🏢 Business Model & Competitive Advantage
- Operates in banking and financial services sector
- Competitive advantage through strong retail and SME presence
- Industry demand supported by credit growth and financial inclusion initiatives
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 260–270 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and growth prospects support sustained performance
✅ Positive
- PAT growth of 8.98% quarter-on-quarter
- EPS at 15.8 ₹ reflects consistent profitability
- DII holding increased (+1.39%)
⚠️ Limitation
- High debt-to-equity ratio (8.75), though typical for banks
- ROCE (6.95%) is moderate compared to peers
- Stock trading below DMA 50 (277 ₹), showing weak momentum
📰 Company Negative News
- FII holding decreased (-0.60%)
- Stock corrected from 52-week high of 302 ₹
- MACD at -4.98 indicates bearish sentiment
🌟 Company Positive News
- PAT increased to 1,041 Cr. from 955 Cr.
- DII holding increased (+1.39%)
- PEG ratio at 0.59 highlights undervaluation relative to growth
🏭 Industry
- Industry PE at 14.8, FEDERALBNK trades slightly above peers
- Sector benefits from credit expansion, digital banking adoption, and financial inclusion
🔎 Conclusion
- FEDERALBNK shows solid fundamentals with consistent profitability and strong growth prospects
- Valuation is fair compared to industry peers, with PEG ratio suggesting attractive entry
- Recommended for long-term holding, with entry near 260–270 ₹ offering good risk-reward potential