FEDERALBNK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | FEDERALBNK | Market Cap | 70,746 Cr. | Current Price | 287 ₹ | High / Low | 298 ₹ |
| Stock P/E | 18.2 | Book Value | 142 ₹ | Dividend Yield | 0.42 % | ROCE | 6.95 % |
| ROE | 13.0 % | Face Value | 2.00 ₹ | DMA 50 | 265 ₹ | DMA 200 | 230 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 1.39 % | PAT Qtr | 1,041 Cr. | PAT Prev Qtr | 955 Cr. |
| RSI | 64.2 | MACD | 7.10 | Volume | 68,13,134 | Avg Vol 1Wk | 80,72,932 |
| Low price | 173 ₹ | High price | 298 ₹ | PEG Ratio | 0.63 | Debt to equity | 8.75 |
| 52w Index | 91.2 % | Qtr Profit Var | 8.98 % | EPS | 15.8 ₹ | Industry PE | 15.8 |
📊 FEDERALBNK shows strong potential for swing trading. The fundamentals are fair with ROE (13.0%) and ROCE (6.95%), while valuation remains attractive (P/E 18.2 vs industry 15.8). The stock is trading above both 50 DMA (265 ₹) and 200 DMA (230 ₹), indicating bullish momentum. RSI at 64.2 suggests strength but nearing overbought territory, while MACD (7.10) confirms positive momentum. Quarterly PAT growth (+8.98%) adds confidence, supported by rising DII holdings. However, high debt-to-equity (8.75) is a concern.
💡 Optimal Entry Price: Around 275–285 ₹ (near support zone close to 50 DMA).
🚪 Exit Strategy: If already holding, consider exiting near 295–298 ₹ (close to 52-week high and resistance zone).
✅ Positive
- EPS of 15.8 ₹ highlights consistent profitability.
- Quarterly PAT improved from 955 Cr. to 1,041 Cr. (+8.98%).
- DII holdings increased (+1.39%), showing domestic institutional support.
- Stock trading above both 50 DMA and 200 DMA, indicating bullish trend.
- PEG ratio of 0.63 suggests undervaluation relative to growth.
⚠️ Limitation
- High debt-to-equity ratio (8.75), raising leverage concerns.
- RSI at 64.2, nearing overbought levels.
- Volume slightly below weekly average, showing reduced trading activity.
📉 Company Negative News
- FII holdings decreased (-0.60%), showing reduced foreign investor confidence.
- High leverage compared to peers.
📈 Company Positive News
- Quarterly PAT growth (+8.98%) indicates steady improvement.
- DII holdings increased, reflecting domestic support.
- Strong technical position above DMA levels.
🏭 Industry
- Industry PE at 15.8, close to company’s PE (18.2), suggesting fair valuation.
- Banking sector outlook remains positive with steady credit growth.
🔎 Conclusion
FEDERALBNK is fundamentally stable and technically strong, making it a good candidate for swing trading. Entry around 275–285 ₹ offers a favorable setup, with exit near 295–298 ₹. Traders should remain cautious of high leverage but can benefit from strong momentum and institutional support.