Fedbank Financial Services Ltd. (FEDFINA) AI Stock Analysis

• Market Cap: ₹58.04B
• Dividend Yield: N/A
• Average Volume (3M): 108.62K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.89
• Revenue Growth: 14.44%
• EPS Growth: -10.84%
• Country: IN
• Employees: 4,262
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.20
• Shares Outstanding: 374,076,800
• 10 Day Avg. Volume: 106,807
• 30 Day Avg. Volume: 108,621
• PEG Ratio: -0.80
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -2.91
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹152.00 ▼(-5.35% Downside)

Fedbank Financial Services Ltd. has a solid financial performance with strong revenue growth, but faces challenges with high leverage and cash flow issues. The technical indicators suggest bearish momentum, while the valuation is moderate. The absence of dividend yield limits immediate income potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market penetration, supporting long-term financial stability.

Operational Performance

Healthy gross margins reflect strong operational efficiency, which can sustain profitability even in competitive markets.

Return on Equity

A solid ROE indicates effective management and utilization of equity, enhancing shareholder value over the long term.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flow growth can strain liquidity, affecting the company's ability to fund operations and meet financial obligations.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, which could erode profitability if not addressed.

Fedbank Financial Services Ltd. Business Overview & Revenue Model

Company Description

Fedbank Financial Services Limited, a non-banking finance company (NBFC), provides financing services to individuals and businesses in India. It operates through three segments: Distribution, Retail Finance, and Wholesale Finance. The company offers housing, personal car, personal, home equity mortgage, gold, unsecured business, mortgage, and retail loans, as well as loans against property; construction finance to developers; and loans to other NBFCs. It also provides insurance products. The company was incorporated in 1995 and is based in Mumbai, India. Fedbank Financial Services Limited operates a subsidiary of The Federal Bank Limited.

How the Company Makes Money

FEDFINA generates revenue through several key streams, including management fees from mutual funds, commissions from insurance products, and interest income from loans. The company collects management fees based on the assets under management (AUM) for its mutual fund offerings, which constitutes a significant portion of its revenue. Additionally, it earns commissions from selling insurance policies, both life and non-life, thus diversifying its income sources. Interest income from various loan products, including personal loans and business loans, also contributes to its earnings. Partnerships with banks, insurance companies, and financial institutions further enhance its service offerings and revenue potential, allowing FEDFINA to leverage a broader customer base and expand its market reach.

Fedbank Financial Services Ltd. Financial Statement Overview

Summary

Fedbank Financial Services Ltd. shows strong revenue growth 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	20.15B	19.73B	15.22B	11.51B	8.54B	6.79B
Gross Profit	7.86B	7.56B	5.47B	4.51B	3.42B	2.44B
EBITDA	3.78B	3.65B	3.75B	2.94B	1.85B	1.14B
Net Income	2.30B	2.25B	2.45B	1.80B	1.03B	616.84M
Balance Sheet
Total Assets	0.00	132.50B	111.38B	90.71B	65.56B	54.66B
Cash, Cash Equivalents and Short-Term Investments	0.00	8.35B	10.61B	946.20M	6.57B	6.81B
Total Debt	0.00	99.61B	83.40B	72.70B	51.54B	44.53B
Total Liabilities	-25.47B	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	-3.71B
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: 160.60
• 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 160.6 is above the 20-day moving average (MA) of 149.74, above the 50-day MA of 145.71, and above the 200-day MA of 125.94, indicating a bullish trend. The MACD of 4.26 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 67.29 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
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	66 Neutral	₹30.25B	26.90	―	0.92%	5.73%	12.29%
FEDFINA	65 Neutral	₹58.04B	23.58	―	―	14.44%	-10.84%
MASFIN	64 Neutral	₹56.31B	16.67	―	0.43%	24.90%	11.78%
SURYODAY	57 Neutral	₹15.09B	23.14	―	―	―	―
INDOSTAR	50 Neutral	₹31.80B	5.11	―	―	-5.36%	469.19%

Fedbank Financial Services Ltd. Corporate Events

Fedbank Financial Services Closes Trading Window Ahead of Q3 FY2025 Results

Fedbank Financial Services Ltd. has announced the closure of its trading window for designated persons and their immediate relatives from January 1, 2026 until 48 hours after the declaration of its financial results for the quarter ended December 31, 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. During this period, insiders are prohibited from buying or selling the company’s shares, a routine compliance measure aimed at preventing misuse of unpublished price-sensitive information ahead of quarterly results, thereby reinforcing governance standards and protecting shareholder interests; the date of the board meeting to approve these results will be announced separately and posted on the company’s website.

Fedbank Financial Services Clears Draft Documents for Rs 200 Crore NCD Issue on Private Placement Basis

Fedbank Financial Services Ltd. has received board approval via circular resolution for the draft General Information Document and Key Information Document related to a proposed private placement of secured, listed, rated, redeemable senior non-convertible debentures totaling up to Rs 200 crore. This issuance, part of a broader shareholder-approved NCD borrowing limit of up to Rs 2,500 crore, will involve 20,000 debentures of Rs 1 lakh each with a 36-month tenure, to be listed on the Bombay Stock Exchange, further diversifying the company’s debt funding sources and potentially strengthening its balance sheet and lending capacity.

Fedbank Financial Services Ltd. Allots 8,500 Shares to Employees

Fedbank Financial Services Ltd. has announced the allotment of 8,500 equity shares following the exercise of vested stock options by its employees under the company’s Employee Stock Option Scheme, 2018. This move increases the company’s paid-up share capital and signifies a step towards enhancing employee engagement and retention, potentially impacting the company’s operational dynamics and stakeholder interests.

Fedbank Financial Services Allots Shares Under Employee Stock Option Scheme

Fedbank Financial Services Limited has announced the allotment of 45,563 equity shares following the exercise of vested stock options by its employees under the company’s Employee Stock Option Scheme, 2018. This allotment increases the company’s paid-up share capital and signifies a step in enhancing employee engagement and investment in the company’s growth, reflecting positively on its operational strategy and stakeholder relations.

Fedbank Financial Services Expands Share Capital Through Employee Stock Options

Fedbank Financial Services Ltd. announced the allotment of 348,312 equity shares following the exercise of vested stock options by its employees under the company’s 2018 Employee Stock Option Scheme. This allotment increases the company’s paid-up share capital and the newly allotted shares will rank equally with existing equity shares, with formalities for listing these shares currently underway.