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Fedbank Financial Services Ltd. (IN:FEDFINA)
:FEDFINA
India Market
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Fedbank Financial Services Ltd. (FEDFINA) AI Stock Analysis

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IN:FEDFINA

Fedbank Financial Services Ltd.

(FEDFINA)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
₹168.00
▲(5.07% 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.

Fedbank Financial Services Ltd. (FEDFINA) vs. iShares MSCI India ETF (INDA)

Fedbank Financial Services Ltd. Business Overview & Revenue Model

Company DescriptionFedbank 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 MoneyFEDFINA 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. shows strong revenue growth and stable operational performance. However, high leverage and negative cash flow growth pose potential risks, requiring effective debt management and improved cash flow generation.
Income Statement
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue20.98B20.10B15.92B11.89B8.54B6.82B
Gross Profit6.75B7.48B15.25B11.27B4.52B6.26B
EBITDA5.10B4.99B3.75B7.65B1.85B4.17B
Net Income2.30B2.25B2.45B1.80B1.03B616.84M
Balance Sheet
Total Assets0.00132.50B111.38B90.71B65.56B54.66B
Cash, Cash Equivalents and Short-Term Investments0.008.35B10.61B946.20M6.57B6.81B
Total Debt0.0099.61B83.40B72.70B51.54B44.53B
Total Liabilities-25.47B107.02B88.77B77.15B54.02B46.32B
Stockholders Equity25.47B25.47B22.61B13.56B11.54B8.35B
Cash Flow
Free Cash Flow0.00-9.98B-7.89B4.44B2.27B2.12B
Operating Cash Flow0.00-9.80B-7.76B4.59B2.54B-3.71B
Investing Cash Flow0.003.29B-1.00B-24.99B-15.98B-705.24M
Financing Cash Flow0.0011.87B9.67B20.67B8.84B8.26B

Fedbank Financial Services Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price159.90
Price Trends
50DMA
141.23
Positive
100DMA
126.37
Positive
200DMA
109.65
Positive
Market Momentum
MACD
5.36
Negative
RSI
66.70
Neutral
STOCH
79.84
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 159.9 is above the 20-day moving average (MA) of 152.06, above the 50-day MA of 141.23, and above the 200-day MA of 109.65, indicating a bullish trend. The MACD of 5.36 indicates Negative momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.84 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
₹34.82B31.950.80%7.91%16.20%
72
Outperform
₹60.38B25.9121.41%-16.92%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
64
Neutral
₹56.20B17.330.45%24.45%10.58%
51
Neutral
₹33.43B5.16-3.23%528.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:FEDFINA
Fedbank Financial Services Ltd.
158.50
45.25
39.96%
IN:INDOSTAR
IndoStar Capital Finance Limited
240.40
-40.10
-14.30%
IN:MASFIN
MAS Financial Services Ltd.
301.20
13.39
4.65%
IN:NORTHARC
Northern Arc Capital Ltd.
270.35
-19.55
-6.74%
IN:SURYODAY
Suryoday Small Finance Bank Limited
148.15
-21.10
-12.47%
IN:TFCILTD
Tourism Finance Corporation of India Limited
73.95
43.70
144.46%

Fedbank Financial Services Ltd. Corporate Events

Fedbank Financial Services Corrects Secretarial Auditor Appointment Term
Aug 26, 2025

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
Aug 8, 2025

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
Aug 4, 2025

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
Aug 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 12, 2025