Federal Bank Ltd. (India) (FEDERALBNK) AI Stock Analysis

• Market Cap: ₹461.69B
• Dividend Yield: 0.63%
• Average Volume (3M): 295.11K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.07
• Revenue Growth: 15.26%
• EPS Growth: -1.94%
• Country: IN
• Employees: 14,604
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 3.47
• Shares Outstanding: 2,457,821,800
• 10 Day Avg. Volume: 176,525
• 30 Day Avg. Volume: 295,109
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹203.00
• Price Target Upside: 6.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ₹203.00 ▲(6.59% Upside)

Federal Bank Ltd.'s overall stock score is primarily impacted by its strong profitability and operational efficiency, despite significant revenue decline and cash flow challenges. The technical analysis indicates bearish momentum, which negatively affects the score. The valuation suggests the stock may be undervalued, providing a potential opportunity for investors.

Federal Bank Ltd. (India) Business Overview & Revenue Model

Company Description

Federal Bank Ltd. is a leading private sector bank in India, headquartered in Kochi, Kerala. Established in 1945, the bank offers a wide range of financial products and services including personal banking, corporate banking, agricultural finance, and treasury operations. With a robust network of branches and ATMs across the country, Federal Bank caters to both retail and institutional clients, providing services such as savings accounts, loans, credit cards, foreign exchange, and investment solutions. The bank is also actively involved in digital banking initiatives, enhancing customer experience through technology-driven solutions.

How the Company Makes Money

Federal Bank generates revenue primarily through the interest earned on loans and advances provided to customers, which forms the bulk of its income. The bank offers various loan products, including personal loans, home loans, vehicle loans, and business loans, charging interest at differing rates based on risk and market conditions. In addition to interest income, the bank earns fee-based income from services such as account maintenance fees, transaction fees, and commissions on financial products like insurance and mutual funds. The bank also engages in treasury operations, generating income through investments in government securities and bonds. Significant partnerships with financial institutions and technology companies enhance its service offerings and customer base, contributing to its overall earnings.

Federal Bank Ltd. (India) Financial Statement Overview

Summary

Federal Bank Ltd. demonstrates strong profitability and operational efficiency, with high net profit and EBIT margins. However, the significant decline in revenue growth and negative cash flow trends pose risks to its financial health. The balance sheet remains stable with moderate leverage, but the cash flow challenges need to be addressed to ensure long-term sustainability.

Income Statement

Federal Bank Ltd. has shown strong profitability with consistent gross profit margins of 100% over the years. However, the recent revenue growth rate has been negative at -38.9%, indicating a significant decline in revenue. Despite this, the bank maintains a healthy net profit margin of 30.85% and an EBIT margin of 41.45%, showcasing strong operational efficiency. The decline in revenue growth is a concern and affects the overall score.

Balance Sheet

The bank's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, indicating moderate leverage. The return on equity stands at 12.04%, which is respectable, demonstrating effective use of equity to generate profits. The equity ratio is not explicitly provided, but the overall stability and moderate leverage contribute positively to the score.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow in the most recent period. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow covers net income, but the negative growth in free cash flow is concerning. The operating cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	228.41B	134.80B	102.73B	120.28B	83.59B	77.54B
Gross Profit	107.84B	134.80B	102.73B	122.78B	83.59B	77.54B
EBITDA	55.88B	58.76B	44.45B	54.95B	27.85B	23.23B
Net Income	41.59B	41.59B	31.65B	38.80B	19.70B	16.64B
Balance Sheet
Total Assets	3.60T	3.60T	2.68T	3.18T	2.26T	2.05T
Cash, Cash Equivalents and Short-Term Investments	315.97B	315.97B	78.84B	86.53B	128.50B	138.36B
Total Debt	325.96B	325.96B	258.62B	251.60B	202.05B	127.69B
Total Liabilities	3.25T	3.25T	258.62B	2.87T	2.07T	1.88T
Stockholders Equity	345.38B	345.38B	221.22B	301.05B	192.56B	165.02B
Cash Flow
Free Cash Flow	0.00	-229.82B	52.80M	61.03B	-80.69B	110.48B
Operating Cash Flow	0.00	-222.28B	4.89B	73.77B	-77.74B	111.78B
Investing Cash Flow	0.00	-37.94B	-98.44B	-89.08B	9.08B	-39.14B
Financing Cash Flow	0.00	384.30B	60.38B	433.37B	81.93B	-2.08B

Federal Bank Ltd. (India) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 190.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FEDERALBNK, the sentiment is Negative. The current price of 190.45 is below the 20-day moving average (MA) of 194.52, below the 50-day MA of 202.73, and below the 200-day MA of 196.87, indicating a bearish trend. The MACD of -2.91 indicates Positive momentum. The RSI at 32.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:FEDERALBNK.

Federal Bank Ltd. (India) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%
BANKINDIA	67 Neutral	₹510.58B	5.45		3.60%	18.55%	31.54%
FEDERALBNK	57 Neutral	₹461.69B	11.71		0.63%	15.26%	-1.94%
AUBANK	―	₹518.38B	23.69		0.14%	―	―
YESBANK	60 Neutral	₹636.17B	23.21		―	9.29%	77.92%
IDFCFIRSTB	51 Neutral	₹530.14B	40.18		0.34%	17.19%	-57.11%
IFCI	46 Neutral	₹140.64B	42.89		―	-4.18%	109.86%

Federal Bank Ltd. (India) Corporate Events

Federal Bank Ltd. Releases Q1 2025 Financial Results

Federal Bank Ltd. has announced the publication of its unaudited financial results for the quarter ending June 30, 2025. These results have been published in prominent newspapers and are available on the bank’s website, reflecting the bank’s commitment to transparency and regulatory compliance. This announcement is significant for stakeholders as it provides insights into the bank’s financial health and operational performance for the specified period.

Federal Bank Ltd. Allots Equity Shares Under ESOS 2017

Federal Bank Ltd. has announced the allotment of 168,223 equity shares following the exercise of stock options under its Employee Stock Option Scheme (ESOS) 2017. This move, approved by the Nomination, Remuneration, Ethics and Compensation Committee, reflects the bank’s commitment to rewarding its employees and could potentially enhance employee motivation and retention, thereby positively impacting the bank’s operational efficiency and market positioning.

Federal Bank Allots Equity Shares Under ESOS 2017

Federal Bank Ltd. has announced the allotment of 102,205 equity shares following the exercise of stock options under its Employee Stock Option Scheme (ESOS) 2017. This move, approved by the Nomination, Remuneration, Ethics, and Compensation Committee, reflects the bank’s commitment to incentivizing its employees and could potentially enhance employee engagement and retention.