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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Federal Bank Ltd

About the Company - Federal Bank Ltd

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 SectorFederal Towers, P B No. 103, Ernakulam 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. Siddhartha SenguptaIndependent Director
CA. Manoj FadnisIndependent Director
Ms. Varsha PurandareIndependent Director
Mr. Sudarshan SenIndependent Director
Mr. Ramanand MundkurIndependent Director
Mr. Sankarshan BasuIndependent Director

Federal Bank Ltd. Share Price Update

Share PriceValue
Today₹147.35
Previous Day₹146.65

Basic Stock Data of Federal Bank Ltd

Market Cap 37,115 Cr.
Current Price 152
High / Low167/121
Stock P/E9.55
Book Value 105
Dividend Yield0.67 %
ROCE5.91 %
ROE15.3 %
Face Value 2.00

Data Source: screener.in

Competitors of Federal Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Axis Bank Ltd 3,34,765 Cr. 1,0851,152/81413.0 4220.09 %5.12 %8.73 % 2.00
HDFC Bank Ltd 10,83,540 Cr. 1,4261,758/1,36315.9 5191.34 %6.24 %17.1 % 1.00
Karnataka Bank Ltd 8,223 Cr. 237287/1245.95 2632.14 %5.86 %15.4 % 10.0
REC Ltd 16,232 Cr. 269301/13214.9 2260.56 %5.46 %6.74 % 10.0
AU Small Finance Bank Ltd 40,123 Cr. 600813/54825.3 1650.17 %7.39 %15.4 % 10.0
Industry Average296,576.60 Cr723.4015.01319.000.86%6.01%12.67%6.60

Federal Bank Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue3,6043,5163,5253,5663,6043,6863,8434,2594,6985,0125,3505,7916,085
Interest2,0762,0032,0001,9591,9702,0302,1042,3492,5852,9383,2553,5443,760
Expenses1,4441,3331,5621,4451,4311,3631,3511,5411,5441,5741,6341,6611,814
Financing Profit85180-37162203294388369569500461586511
Financing Margin %2%5%-1%5%6%8%10%9%12%10%9%10%8%
Other Income478493524494521484475628565768741757908
Depreciation0000000000000
Profit before tax5636734876577257788639971,1341,2691,2021,3431,420
Tax %25%26%27%26%25%25%26%26%25%26%26%26%25%
Net Profit4225273614935445996457458569648941,0071,067
EPS in Rs2.102.611.792.312.572.793.023.483.994.514.164.234.26
Gross NPA %2.67%3.35%3.51%3.22%3.10%2.78%2.67%2.45%2.42%2.35%2.37%2.27%2.28%
Net NPA %0.61%1.18%1.28%1.15%1.11%0.98%0.96%0.82%0.77%0.73%0.74%0.68%0.68%

Federal Bank Ltd Quarterly Chart

Federal Bank Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue5,5826,2467,0067,4887,8268,7839,91511,63513,59014,31414,38217,81222,239
Interest3,6074,2094,7285,0565,2595,6536,2267,3168,6788,4357,9599,97513,496
Expenses1,3021,4101,6641,7012,5292,7493,3313,5724,6085,5275,7585,8286,684
Financing Profit673628614731383823587473043526642,0092,059
Financing Margin %12%10%9%10%0%4%4%6%2%2%5%11%9%
Other Income5326656858798081,0841,1601,3351,8821,9722,1212,4363,175
Depreciation598298791081241251221261151391820
Profit before tax1,1471,2101,2021,5307391,3421,3931,9602,0602,2092,6464,2635,234
Tax %34%30%31%34%34%36%35%35%25%25%26%26%
Net Profit7548538501,0584868679351,3181,5901,6801,9963,2103,931
EPS in Rs4.414.984.976.172.835.034.746.637.938.349.3714.9517.16
Dividend Payout %20%18%20%18%25%18%21%21%0%8%19%7%

Federal Bank Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)13.13%-0.35%24.47%-54.06%78.40%7.84%40.96%20.64%5.66%18.81%60.82%
Change in YoY Net Profit Growth (%)0.00%-13.48%24.82%-78.53%132.46%-70.55%33.12%-20.33%-14.98%13.15%42.01%

Federal Bank Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:12%
3 Years:9%
TTM:35%
Compounded Profit Growth
10 Years:14%
5 Years:28%
3 Years:26%
TTM:38%
Stock Price CAGR
10 Years:14%
5 Years:12%
3 Years:22%
1 Year:14%
Return on Equity
10 Years:11%
5 Years:12%
3 Years:13%
Last Year:15%

Federal Bank Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital171171171171344345394397399399421423470
Reserves5,4216,0936,6907,5297,7208,60711,88013,10114,42416,10518,83521,699
Borrowings53,20162,85065,49773,21684,407104,008124,299143,585164,780184,457201,265238,850
Other Liabilities1,7511,8792,2861,9932,2342,5272,6403,4693,7514,0065,7217,031
Total Liabilities60,54470,99374,64382,90994,706115,486139,214160,552183,353204,967226,241268,004
Fixed Assets337412414446508477452462477504643890
CWIP0223271615101828132981
Investments17,10220,85423,83920,34924,92027,91230,59531,67635,71536,73239,06548,702
Other Assets43,10549,72450,36862,08769,26287,081108,158128,397147,133167,717186,504218,330
Total Assets60,54470,99374,64382,90994,706115,486139,214160,552183,353204,967226,241268,004

Federal Bank Ltd Reserves and Borrowings Chart

Federal Bank Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
ROE %14%14%13%15%6%10%9%10%11%11%11%15%

Federal Bank Ltd Financial Efficiency Indicators Chart

Federal Bank Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
FIIs24.51%24.05%25.92%25.23%26.01%26.20%26.40%27.72%26.94%26.27%27.02%29.38%
DIIs43.29%43.89%42.53%41.66%43.25%42.12%44.22%42.33%43.66%42.11%45.74%44.39%
Public32.20%32.06%31.55%33.11%30.74%31.68%29.38%29.96%29.41%31.61%27.25%26.23%
No. of Shareholders5,29,1345,71,4616,19,0637,79,3037,23,6237,54,4886,90,7527,07,1577,36,6748,09,3977,82,9007,96,959

Federal Bank Ltd Shareholding Pattern Chart

No. of Federal Bank Ltd Shareholders

Federal Bank Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan1234912923.441928.32
Mirae Asset Large & Midcap Fund367613201.77574.03
Kotak Emerging Equity Fund - Regular Plan351490801.42548.85
Mirae Asset Midcap Fund314657963.56491.34
Canara Robeco Emerging Equities259225702.03404.78
Nippon India Growth Fund244267631.62381.42
Axis Midcap Fund237860551.51371.42
DSP Mid Cap Fund234605442.18366.34
Franklin India Prima Fund234397523.71366.01
Sundaram Mid Cap Fund221203953.5345.41

Federal Bank Ltd ROCE Trend

Federal Bank Ltd EPS Trend

Federal Bank Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Face Value2.002.002.002.002.00
Basic EPS (Rs.)15.019.528.347.946.65
Diluted EPS (Rs.)14.859.448.317.886.60
Cash EPS (Rs.)15.8710.018.838.427.08
Book Value[Excl.RevalReserv]/Share (Rs.)104.5191.5682.6474.3667.97
Book Value[Incl.RevalReserv]/Share (Rs.)104.5491.5882.6774.3868.00
Operating Revenue / Share (Rs.)84.1768.4071.7168.2058.62
Net Profit / Share (Rs.)15.019.358.257.796.46
Net Profit After MI / Share (Rs.)14.959.378.347.936.63
Net Profit Margin (%)17.8213.6611.5011.4211.02
Net Profit After MI And SOA Nargin (%)17.7613.6911.6211.6211.31
Operating Profit Margin (%)4.15-1.08-2.17-2.42-0.45
Return On Assets (%)1.180.870.810.860.81
Return On Equity / Networth (%)14.3010.2310.0810.669.75
Net Interest Margin (X)2.922.832.862.672.69
Cost To Income (%)35.0539.8538.0333.8733.70
Interest Income / Total Assets (%)6.646.356.987.417.24
Non-Interest Income / Total Assets (%)0.900.930.951.020.83
Operating Profit / Total Assets (%)0.27-0.06-0.15-0.17-0.03
Operating Expenses / Total Assets (%)1.942.021.901.931.76
Interest Expenses / Total Assets (%)3.723.514.114.734.55
Enterprise Value (Rs.Cr.)254233.00211717.07191923.04166776.96156298.42
EV Per Net Sales (X)14.2714.7213.4112.2713.43
Price To Book Value (X)1.271.060.910.551.42
Price To Sales (X)1.571.421.060.601.64
Retention Ratios (%)88.0392.90100.00100.0084.95
Earnings Yield (X)0.110.090.110.190.06

Federal Bank Ltd Profitability Ratios (%)

Federal Bank Ltd Liquidity Ratios

Federal Bank Ltd Liquidity Ratios (%)

Federal Bank Ltd Interest Coverage Ratios (X)

Federal Bank Ltd Valuation Ratios

Fair Value / Intrinsic Value of Federal Bank Ltd

Fair Value: ₹154.45

The stock is undervalued by 1.61% compared to the current price ₹152

*Investments are subject to market risks

Strength and Weakness of Federal Bank Ltd

Unable to fetch valid data for stock valuation.

Should I Buy Federal Bank Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Federal Bank Ltd:
    1. Net Profit Margin: 17.82%
      • 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: N/A% (Industry Average ROCE: 6.01%)
      • 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. Interest Coverage Ratio (Post Tax): N/A
      • 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.
    4. Quick Ratio: N/A
      • 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.
    5. ✓ Stock P/E: 9.55 (Industry average Stock P/E: 15.01)
      • 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.
    6. ✗ Total Debt / Equity: N/A
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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