Fedbank Financial Services Ltd. (FEDFINA) AI Stock Analysis

• Market Cap: ₹56.00B
• Dividend Yield: N/A
• Average Volume (3M): 99.50K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.84
• Revenue Growth: 21.41%
• EPS Growth: -16.92%
• Country: IN
• Employees: 4,262
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 2.00
• Shares Outstanding: 373,600,950
• 10 Day Avg. Volume: 121,719
• 30 Day Avg. Volume: 99,504
• 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: ₹164.00
• Price Target Upside: 9.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ₹168.00 ▲(12.07% Upside)

Fedbank Financial Services Ltd. benefits from strong technical momentum and robust revenue growth. However, high leverage and cash flow challenges, along with a moderate valuation, slightly temper the overall outlook.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates successful business expansion and effective market penetration, which are crucial for long-term sustainability.

Operational Performance

Efficient cost management reflected in healthy gross margins supports profitability and competitive positioning, enhancing long-term business viability.

Return on Equity

A strong Return on Equity indicates efficient capital utilization, which can drive shareholder value and support future growth initiatives.

Negative Factors

High Leverage

Significant leverage can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Cash Flow Growth

Negative cash flow growth may indicate liquidity challenges, affecting the company's ability to fund operations and meet financial obligations over time.

Decreased Net Profit Margin

A declining net profit margin could signal inefficiencies or rising costs, which may hinder profitability and long-term financial health.

Fedbank Financial Services Ltd. Business Overview & Revenue Model

Company Description

Fedbank Financial Services Ltd. (FEDFINA) is a non-banking financial company (NBFC) that operates in the financial services sector. It provides a wide range of financial products and services, including loans against property, gold loans, business loans, and structured finance solutions. The company aims to cater to the financial needs of both retail and corporate customers across India, leveraging its expertise and wide distribution network.

How the Company Makes Money

FEDFINA makes money through interest income and fees associated with the various loan products it offers. The primary revenue stream comes from interest earned on loans against property, gold loans, and business loans, where the company charges borrowers a rate of interest over the loan tenure. Additionally, FEDFINA generates income from processing fees, late payment charges, and other ancillary services provided to its clients. The company's earnings are also bolstered through strategic partnerships with banks and other financial institutions, enabling it to expand its reach and product offerings. Effective risk management and a focus on maintaining a high-quality loan portfolio contribute to its profitability.

Fedbank Financial Services Ltd. Financial Statement Overview

Summary

Fedbank Financial Services Ltd. is on a growth trajectory with strong revenue and stable operational performance. However, significant leverage and cash flow challenges present potential risks. The company's financial health depends on its ability to manage debt effectively and improve cash flow generation.

Income Statement

Fedbank Financial Services Ltd. has demonstrated strong revenue growth, with a notable increase from 2024 to 2025, indicating robust business expansion. The Gross Profit Margin remains healthy, suggesting efficient cost management. However, the Net Profit Margin has slightly decreased, reflecting potential challenges in converting revenue to profit. The EBIT and EBITDA margins are stable, indicating a solid operational performance.

Balance Sheet

The company shows a high level of debt with a Debt-to-Equity ratio above industry norms, which suggests significant leverage. However, the Return on Equity is solid, implying effective use of equity capital. The Equity Ratio indicates a stable financial structure, though the rising debt level could pose future risks.

Cash Flow

Fedbank Financial Services Ltd. has experienced negative free cash flow growth, indicating potential liquidity challenges. The Operating Cash Flow to Net Income ratio is less than ideal, which may impact the company's ability to generate cash from operations. However, the firm has managed its financing activities to address cash needs, as seen in positive financing cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.13B	20.10B	8.83B	11.89B	4.52B	6.82B
Gross Profit	9.56B	7.48B	5.47B	11.27B	8.12B	6.26B
EBITDA	4.83B	4.99B	3.75B	7.65B	1.85B	4.17B
Net Income	2.25B	2.25B	2.45B	1.80B	1.03B	616.84M
Balance Sheet
Total Assets	132.50B	132.50B	111.38B	90.71B	65.56B	54.66B
Cash, Cash Equivalents and Short-Term Investments	8.35B	8.35B	10.32B	946.20M	6.57B	7.18B
Total Debt	99.61B	99.61B	83.40B	72.70B	51.54B	44.53B
Total Liabilities	107.02B	107.02B	88.77B	77.15B	54.02B	46.32B
Stockholders Equity	25.47B	25.47B	22.61B	13.56B	11.54B	8.35B
Cash Flow
Free Cash Flow	0.00	-9.98B	-7.89B	4.44B	2.27B	2.12B
Operating Cash Flow	0.00	-9.80B	-7.76B	4.59B	2.54B	2.23B
Investing Cash Flow	0.00	3.29B	-1.00B	-24.99B	-15.98B	-705.24M
Financing Cash Flow	0.00	11.87B	9.67B	20.67B	8.84B	8.26B

Fedbank Financial Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 149.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FEDFINA, the sentiment is Positive. The current price of 149.9 is above the 20-day moving average (MA) of 140.04, above the 50-day MA of 130.82, and above the 200-day MA of 106.47, indicating a bullish trend. The MACD of 4.95 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FEDFINA.

Fedbank Financial Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFCILTD	73 Outperform	₹33.73B	30.95		0.82%	7.91%	16.21%
FEDFINA	72 Outperform	₹56.00B	24.29		―	21.41%	-16.92%
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%
MASFIN	66 Neutral	₹58.36B	18.00		0.43%	24.45%	10.58%
INDOSTAR	48 Neutral	₹36.13B	5.62		―	-3.23%	528.67%
NORTHARC	―	₹39.78B	12.55		―	―	―
SURYODAY	―	₹13.50B	16.83		―	―	―

Fedbank Financial Services Ltd. Corporate Events

Fedbank Financial Services Corrects Secretarial Auditor Appointment Term

Fedbank Financial Services Ltd. announced a correction to a previous communication regarding the appointment of DKJ & Associates as Secretarial Auditors. The initial term for the appointment was mistakenly reported as three years, but it has been corrected to five years, starting from April 1, 2025, to March 31, 2030, pending shareholder approval at the upcoming Annual General Meeting. This correction ensures compliance with regulatory requirements and maintains transparency with stakeholders.

Fedbank Financial Services Increases Share Capital with Employee Stock Options

Fedbank Financial Services Ltd. announced the allotment of 50,687 equity shares following the exercise of stock options by employees under the company’s Employee Stock Option Scheme, 2018. This move increases the company’s paid-up share capital and reflects its commitment to employee participation in ownership, potentially enhancing employee motivation and aligning interests with shareholders.

Fedbank Financial Services Ltd. Hosts Analyst and Investor Meeting

Fedbank Financial Services Ltd. announced that it held an analyst and investor meeting on August 4, 2025, in Mumbai. The company clarified that no unpublished price-sensitive information was disclosed during this meeting, aligning with regulatory compliance and ensuring transparency with stakeholders.

Fedbank Financial Services Conducts Analyst and Investor Meeting

Fedbank Financial Services Limited announced that its officials held a meeting with analysts and investors on August 4, 2025, in Mumbai. The meeting was conducted in compliance with SEBI regulations, and no unpublished price-sensitive information was shared, ensuring transparency and adherence to regulatory standards.