FEDERALBNK - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | FEDERALBNK | Market Cap | 65,522 Cr. | Current Price | 266 ₹ | High / Low | 302 ₹ |
| Stock P/E | 16.8 | Book Value | 142 ₹ | Dividend Yield | 0.45 % | ROCE | 6.95 % |
| ROE | 13.0 % | Face Value | 2.00 ₹ | DMA 50 | 276 ₹ | 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 | 38.7 | MACD | -5.26 | Volume | 98,70,368 | Avg Vol 1Wk | 1,01,86,307 |
| Low price | 183 ₹ | High price | 302 ₹ | PEG Ratio | 0.58 | Debt to equity | 8.75 |
| 52w Index | 69.8 % | Qtr Profit Var | 8.98 % | EPS | 15.8 ₹ | Industry PE | 14.3 |
📊 FEDERALBNK shows solid fundamentals with ROE (13.0%) and EPS of 15.8 ₹, supported by consistent profit growth (PAT 1,041 Cr. vs 955 Cr.). The P/E of 16.8 is slightly above the industry average (14.3), suggesting fair valuation. Technical indicators (RSI 38.7, MACD -5.26) show mild bearish momentum, but the stock is trading near DMA 200 (244 ₹), offering support. This makes FEDERALBNK a reasonably good candidate for swing trading with cautious entry.
💡 Optimal Entry Price: Around 260–265 ₹ (close to support zone near 244 ₹).
📉 Exit Strategy (if already holding): Consider booking profits near 275–280 ₹ (DMA 50 resistance) unless momentum strengthens further.
Positive
- EPS of 15.8 ₹ supports valuation strength.
- Quarterly PAT growth (+8.98%) highlights earnings resilience.
- DII holdings increased (+1.39%), showing domestic institutional confidence.
- PEG ratio of 0.58 suggests growth at reasonable valuation.
Limitation
- Current price (266 ₹) is below DMA 50 (276 ₹), reflecting technical weakness.
- RSI and MACD indicate mild bearish momentum.
- ROCE (6.95%) is modest compared to peers.
- Debt-to-equity ratio of 8.75 is high, typical for banks but adds leverage risk.
Company Negative News
- FII holdings decreased (-0.60%), showing reduced foreign investor confidence.
- Stock trading below DMA 50, reflecting short-term weakness.
Company Positive News
- Quarterly PAT improved (1,041 Cr. vs 955 Cr.).
- DII holdings increased (+1.39%), showing strong domestic support.
- Dividend yield of 0.45% provides modest income support.
Industry
- Industry P/E is 14.3, while company P/E is 16.8, showing slight premium valuation.
- Banking sector remains resilient, supported by credit growth and stable demand.
Conclusion
✅ FEDERALBNK is a moderately strong swing trade candidate. Strong earnings growth and fair valuation support potential upside, though technical weakness and high leverage require caution. Entry near 260–265 ₹ offers favorable risk-reward, with exit targets around 275–280 ₹. A strict stop-loss near 255 ₹ is advisable to manage downside risk.