FEDERALBNK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | FEDERALBNK | Market Cap | 79,855 Cr. | Current Price | 324 ₹ | High / Low | 325 ₹ |
| Stock P/E | 19.4 | Book Value | 157 ₹ | Dividend Yield | 0.37 % | ROCE | 6.27 % |
| ROE | 11.4 % | Face Value | 2.00 ₹ | DMA 50 | 297 ₹ | DMA 200 | 266 ₹ |
| Chg in FII Hold | 1.11 % | Chg in DII Hold | -0.71 % | PAT Qtr | 1,259 Cr. | PAT Prev Qtr | 1,041 Cr. |
| RSI | 73.2 | MACD | 8.95 | Volume | 79,62,170 | Avg Vol 1Wk | 77,76,930 |
| Low price | 185 ₹ | High price | 325 ₹ | PEG Ratio | 1.76 | Debt to equity | 8.66 |
| 52w Index | 99.3 % | Qtr Profit Var | 22.2 % | EPS | 16.7 ₹ | Industry PE | 15.2 |
📊 FEDERALBNK shows decent fundamentals and strong technical momentum for swing trading. The P/E ratio (19.4) is slightly above industry average (15.2), suggesting fair valuation. ROE (11.4%) is moderate, while ROCE (6.27%) is relatively weak. EPS of 16.7 ₹ supports profitability, and debt-to-equity is high at 8.66, typical for banks. RSI at 73.2 indicates overbought conditions, while MACD at 8.95 shows bullish momentum. The stock trades above both 50 DMA (297 ₹) and 200 DMA (266 ₹), confirming an uptrend. PAT improved (1,259 Cr vs 1,041 Cr), with quarterly profit variation at +22.2%. FII holdings increased (+1.11%), though DII holdings decreased (-0.71%).
💡 Optimal Entry Price: Around 295–305 ₹ (near DMA support).
📈 Exit Strategy: If already holding, consider exiting near 320–325 ₹ (recent high resistance) or trail stop-loss to lock gains if momentum continues.
Positive
- 📌 [Fair Valuation](ca://s?q=FEDERALBNK_PE_ratio): P/E of 19.4 is close to industry average (15.2).
- 📌 [Profit Growth](ca://s?q=FEDERALBNK_quarterly_profit_growth): PAT increased from 1,041 Cr to 1,259 Cr (+22.2%).
- 📌 [FII Support](ca://s?q=FEDERALBNK_FII_holdings): Foreign institutional investors increased holdings by 1.11%.
- 📌 [Uptrend Confirmation](ca://s?q=FEDERALBNK_DMA_trend): Stock trades above both 50 DMA and 200 DMA.
Limitation
- ⚠️ [Weak ROCE](ca://s?q=FEDERALBNK_ROCE): ROCE at 6.27% is modest.
- ⚠️ [High Debt](ca://s?q=FEDERALBNK_debt_equity): Debt-to-equity ratio of 8.66 is high, though typical for banks.
- ⚠️ [Overbought RSI](ca://s?q=FEDERALBNK_RSI): RSI at 73.2 indicates overbought conditions.
- ⚠️ [DII Reduction](ca://s?q=FEDERALBNK_DII_holdings): Domestic institutional investors reduced holdings by 0.71%.
Company Negative News
- ❌ [Profitability Concern](ca://s?q=FEDERALBNK_ROCE_concern): ROCE remains weak compared to peers.
- ❌ [DII Exit](ca://s?q=FEDERALBNK_DII_exit): Domestic investors reduced holdings.
Company Positive News
- ✅ [Profit Growth](ca://s?q=FEDERALBNK_profit_growth): PAT rose by 22.2% quarter-on-quarter.
- ✅ [EPS Strength](ca://s?q=FEDERALBNK_EPS): EPS of 16.7 ₹ supports valuation.
- ✅ [Market Cap Strength](ca://s?q=FEDERALBNK_market_cap): Market cap of 79,855 Cr indicates industry relevance.
Industry
- 🏭 [Industry PE](ca://s?q=Banking_industry_PE): Industry average P/E is 15.2, slightly lower than FEDERALBNK’s valuation.
- 🏭 [Sector Outlook](ca://s?q=Banking_sector_outlook): Banking sector benefits from credit growth and rising interest margins.
Conclusion
📈 FEDERALBNK is a moderately strong candidate for swing trading. Fundamentals are fair, technicals show bullish momentum, and profit growth is encouraging. Entry near 295–305 ₹ offers a favorable setup, with exit targets around 320–325 ₹. Risks include weak ROCE, high debt, and overbought RSI, but strong PAT growth and FII support make it suitable for short-term gains with caution.