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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500469 | NSE: FEDERALBNK

Federal Bank Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:21 pm

Market Cap 51,714 Cr.
Current Price 211
High / Low211/139
Stock P/E12.5
Book Value 124
Dividend Yield0.57 %
ROCE6.93 %
ROE14.8 %
Face Value 2.00
PEG Ratio0.84

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Federal Bank Ltd

Competitors of Federal Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fino Payments Bank Ltd 2,735 Cr. 329467/24929.3 77.30.00 %7.07 %14.4 % 10.0
Yes Bank Ltd 59,969 Cr. 19.132.8/19.033.5 14.30.00 %5.83 %3.18 % 2.00
Ujjivan Small Finance Bank Ltd 6,322 Cr. 32.763.0/32.65.43 28.74.59 %11.1 %26.7 % 10.0
South Indian Bank Ltd 5,876 Cr. 22.436.9/22.24.85 33.71.34 %6.19 %13.8 % 1.00
Karnataka Bank Ltd 7,538 Cr. 200287/1925.62 2882.75 %6.24 %13.7 % 10.0
Industry Average159,242.95 Cr403.2614.49197.151.01%7.10%13.93%5.95

All Competitor Stocks of Federal Bank Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Revenue3,5253,5663,6043,6863,8434,2594,6985,0125,3505,7916,0856,3396,728
Interest2,0001,9591,9702,0302,1042,3492,5852,9383,2553,5443,7603,9364,212
Expenses1,5621,4451,4311,3631,3511,5411,5441,5741,6341,6611,8141,9172,048
Financing Profit-37162203294388369569500461586511486468
Financing Margin %-1%5%6%8%10%9%12%10%9%10%8%8%7%
Other Income524494521484475628565768741757908810936
Depreciation0000000000000
Profit before tax4876577257788639971,1341,2691,2021,3431,4201,2961,404
Tax %27%26%25%25%26%26%25%26%26%26%25%25%26%
Net Profit3614935445996457458569648941,0071,0679961,047
EPS in Rs1.792.312.572.793.023.483.994.514.164.234.263.994.20
Gross NPA %3.51%3.22%3.10%2.78%2.67%2.45%2.42%2.35%2.37%2.27%2.28%2.11%
Net NPA %1.28%1.15%1.11%0.98%0.96%0.82%0.77%0.73%0.74%0.68%0.68%0.63%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Revenue6,2467,0067,4887,8268,7839,91511,63513,59014,31414,38217,81223,56524,943
Interest4,2094,7285,0565,2595,6536,2267,3168,6788,4357,9599,97514,49515,452
Expenses1,4101,6641,7012,5292,7493,3313,5724,6085,5275,7585,8287,0267,440
Financing Profit628614731383823587473043526642,0092,0452,052
Financing Margin %10%9%10%0%4%4%6%2%2%5%11%9%8%
Other Income6656858798081,0841,1601,3351,8821,9722,1212,4363,2163,411
Depreciation829879108124125122126115139182-00
Profit before tax1,2101,2021,5307391,3421,3931,9602,0602,2092,6464,2635,2615,463
Tax %30%31%34%34%36%35%35%25%25%26%26%25%
Net Profit8538501,0584868679351,3181,5901,6801,9963,2103,9644,118
EPS in Rs4.984.976.172.835.034.746.637.938.349.3714.9515.9316.68
Dividend Payout %18%20%18%25%18%21%21%-0%8%19%7%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-0.35%24.47%-54.06%78.40%7.84%40.96%20.64%5.66%18.81%60.82%23.49%
Change in YoY Net Profit Growth (%)0.00%24.82%-78.53%132.46%-70.55%33.12%-20.33%-14.98%13.15%42.01%-37.33%

Federal Bank Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:18%
TTM:25%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:33%
TTM:12%
Stock Price CAGR
10 Years:11%
5 Years:19%
3 Years:32%
1 Year:45%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:14%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital171171171344345394397399399421423487
Reserves6,0936,6907,5297,7208,60711,88013,10114,42416,10518,83521,69929,618
Borrowings62,85065,49773,21684,407104,008124,299143,585164,780184,457201,265238,850277,615
Other Liabilities1,8792,2861,9932,2342,5272,6403,4693,7514,0065,7217,03110,119
Total Liabilities70,99374,64382,90994,706115,486139,214160,552183,353204,967226,241268,004317,839
Fixed Assets412414446508477452462477504643890996
CWIP22327161510182813298167
Investments20,85423,83920,34924,92027,91230,59531,67635,71536,73239,06548,70261,043
Other Assets49,72450,36862,08769,26287,081108,158128,397147,133167,717186,504218,330255,733
Total Assets70,99374,64382,90994,706115,486139,214160,552183,353204,967226,241268,004317,839

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2,8801,1975,158-1,5573,431-5,0517,8733,73111,179-7,7744896,431
Cash from Investing Activity +-3,487-737-1,3641,990-2,384-1,579-3,378-4,688-3,913901-9,860-8,912
Cash from Financing Activity +795349-3,5442059858,371-3,6373,661-2088,1936,0383,871
Net Cash Flow1888082506392,0321,7418582,7047,0581,320-3,3321,390

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-61.00-64.00-72.00-82.00-102.00-121.00-140.00-160.00-179.00-196.00-233.00-270.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %14%13%15%6%10%9%10%11%11%11%15%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
FIIs25.92%25.23%26.01%26.20%26.40%27.72%26.94%26.27%27.02%29.38%28.57%28.63%
DIIs42.53%41.66%43.25%42.12%44.22%42.33%43.66%42.11%45.74%44.39%45.16%44.97%
Public31.55%33.11%30.74%31.68%29.38%29.96%29.41%31.61%27.25%26.23%26.28%26.40%
No. of Shareholders6,19,0637,79,3037,23,6237,54,4886,90,7527,07,1577,36,6748,09,3977,82,9007,96,9598,70,0108,55,887

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan123,641,2923.112191.5421,430,9172024-11-20476.93%
Nippon India Growth Fund37,000,0002.13655.8321,430,9172024-11-2072.65%
Kotak Emerging Equity Fund - Regular Plan35,149,0801.27623.0221,430,9172024-11-2064.01%
DSP Mid Cap Fund30,349,9502.81537.9521,430,9172024-11-2041.62%
Canara Robeco Emerging Equities26,556,2261.98470.7121,430,9172024-11-2023.92%
Franklin India Prima Fund23,439,7523.46415.4721,430,9172024-11-209.37%
Mirae Asset Large & Midcap Fund21,668,4461.01384.0721,430,9172024-11-201.11%
Axis Midcap Fund21,430,9171.26379.8621,430,9172024-11-200%
Mirae Asset Midcap Fund21,380,8972.27378.9821,430,9172024-11-20-0.23%
HDFC Small Cap Fund - Regular Plan20,759,4511.17367.9621,430,9172024-11-20-3.13%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value2.002.002.002.002.00
Basic EPS (Rs.)16.7515.019.528.347.94
Diluted EPS (Rs.)16.5514.859.448.317.88
Cash EPS (Rs.)17.0915.8710.018.838.42
Book Value[Excl.RevalReserv]/Share (Rs.)123.60104.5191.5682.6474.36
Book Value[Incl.RevalReserv]/Share (Rs.)123.62104.5491.5882.6774.38
Operating Revenue / Share (Rs.)96.7684.1768.4071.7168.20
Net Profit / Share (Rs.)16.1315.019.358.257.79
Net Profit After MI / Share (Rs.)15.9314.959.378.347.93
Net Profit Margin (%)16.6617.8213.6611.5011.42
Net Profit After MI And SOA Nargin (%)16.4617.7613.6911.6211.62
Operating Profit Margin (%)3.014.15-1.08-2.17-2.42
Return On Assets (%)1.221.180.870.810.86
Return On Equity / Networth (%)12.8914.3010.2310.0810.66
Net Interest Margin (X)2.852.922.832.862.67
Cost To Income (%)55.0750.7253.7549.7452.20
Interest Income / Total Assets (%)7.416.646.356.987.41
Non-Interest Income / Total Assets (%)1.010.900.930.951.02
Operating Profit / Total Assets (%)0.220.27-0.06-0.15-0.17
Operating Expenses / Total Assets (%)2.121.942.021.901.93
Interest Expenses / Total Assets (%)4.563.723.514.114.73
Enterprise Value (Rs.Cr.)302672.32254233.00211717.07191923.04166776.96
EV Per Net Sales (X)12.8414.2714.7213.4112.27
Price To Book Value (X)1.211.271.060.910.55
Price To Sales (X)1.551.571.421.060.60
Retention Ratios (%)93.9488.0392.90100.00100.00
Earnings Yield (X)0.100.110.090.110.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Federal Bank Ltd as of November 21, 2024 is: 230.71

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Federal Bank Ltd is Undervalued by 9.34% compared to the current share price 211.00

Intrinsic Value of Federal Bank Ltd as of November 21, 2024 is: 265.02

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Federal Bank Ltd is Undervalued by 25.60% compared to the current share price 211.00

Last 5 Year EPS CAGR: 14.87%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Federal Bank Ltd:
    1. Net Profit Margin: 16.66%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 0% (Industry Average ROCE: 7.1%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 13.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 12.5 (Industry average Stock P/E: 14.49)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Federal Bank Ltd. is a Public Limited Listed company incorporated on 23/04/1931 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L65191KL1931PLC000368 and registration number is 000368. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 13660.75 Cr. and Equity Capital is Rs. 420.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private SectorP.B. No. 103, Aluva Kerala 683101secretarial@federalbank.co.in
http://www.federalbank.co.in
Management
NamePosition Held
Mr. Abhaya Prasad HotaPart Time Chairman & Independent Director
Mr. Shyam SrinivasanManaging Director & CEO
Mr. Harsh DugarExecutive Director
Ms. Shalini WarrierExecutive Director
Mr. Sudarshan SenIndependent Director
Ms. Varsha PurandareIndependent Director
CA. Manoj FadnisIndependent Director
Mr. Siddhartha SenguptaIndependent Director
Mr. Sankarshan BasuIndependent Director
Mr. Ramanand MundkurIndependent Director
Mr. Elias GeorgeIndependent Director

FAQ

What is the latest intrinsic value of Federal Bank Ltd?

The latest intrinsic value of Federal Bank Ltd as on 21 November 2024 is ₹230.71, which is 9.34% higher than the current market price of ₹211.00.

What is the Market Cap of Federal Bank Ltd?

The Market Cap of Federal Bank Ltd is 51,714 Cr..

What is the current Stock Price of Federal Bank Ltd as on 21 November 2024?

The current stock price of Federal Bank Ltd as on 21 November 2024 is ₹211.

What is the High / Low of Federal Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of Federal Bank Ltd stocks is 211/139.

What is the Stock P/E of Federal Bank Ltd?

The Stock P/E of Federal Bank Ltd is 12.5.

What is the Book Value of Federal Bank Ltd?

The Book Value of Federal Bank Ltd is 124.

What is the Dividend Yield of Federal Bank Ltd?

The Dividend Yield of Federal Bank Ltd is 0.57 %.

What is the ROCE of Federal Bank Ltd?

The ROCE of Federal Bank Ltd is 6.93 %.

What is the ROE of Federal Bank Ltd?

The ROE of Federal Bank Ltd is 14.8 %.

What is the Face Value of Federal Bank Ltd?

The Face Value of Federal Bank Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Federal Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE