Fedbank Financial Services Ltd. (FEDFINA) AI Stock Analysis

• Market Cap: ₹52.16B
• Dividend Yield: N/A
• Average Volume (3M): 108.62K
• Price to Earnings (P/E): 21.2
• 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: 374,070,700
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹152.00 ▲(9.00% Upside)

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 Ltd. (FEDFINA) is a financial services company based in India, focusing on providing a diverse range of financial products and services. The company primarily operates in the sectors of mutual funds, insurance, and loan products, catering to both individual and institutional clients. Core offerings include asset management, loan financing, and insurance solutions, aimed at enhancing financial inclusion and meeting the varying needs of its customers.

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: Negative
• Last Price: 139.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 139.45 is below the 20-day moving average (MA) of 143.97, below the 50-day MA of 146.01, and above the 200-day MA of 120.69, indicating a neutral trend. The MACD of -0.82 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 26.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
FEDFINA	65 Neutral	₹52.16B	21.19	―	―	14.44%	-10.84%
MASFIN	64 Neutral	₹57.66B	17.07	―	0.44%	24.90%	11.78%
TFCILTD	58 Neutral	₹29.96B	26.64	―	0.90%	5.73%	12.29%
INDOSTAR	50 Neutral	₹33.23B	5.34	―	―	-5.36%	469.19%

Fedbank Financial Services Ltd. Corporate Events

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.

Fedbank Financial Services Sells Non-Performing Loans to ISARC

Fedbank Financial Services Limited has announced the sale of a significant portion of its non-performing assets, specifically small-ticket LAP and affordable home loans, to India SME Asset Reconstruction Company Limited (ISARC). The transaction, amounting to Rs. 32.57 crore, represents approximately 41% of the principal outstanding value of the assets sold. This strategic move is expected to improve the company’s financial health by reducing its gross non-performing assets and is likely to enhance its operational efficiency and market positioning.

Fedbank Financial Services Hosts Analyst and Investor Meeting

Fedbank Financial Services Ltd. announced that it held an analyst and investor meeting on September 26, 2025, with Bajaj AMC through a virtual conference. The company assured that no unpublished price-sensitive information was disclosed during this meeting, aligning with SEBI regulations. This disclosure is part of the company’s commitment to transparency and regulatory compliance, potentially reinforcing trust among stakeholders.

Fedbank Financial Services Expands Share Capital Through Employee Stock Options

Fedbank Financial Services Limited has announced the allotment of 67,400 equity shares following the exercise of stock options by its employees under the company’s 2018 Employee Stock Option Scheme. This move increases the company’s paid-up share capital, with the newly allotted shares ranking equally with existing shares, indicating a positive step in employee engagement and capital structure enhancement.