banking

Federal Bank

FEDERALBNK · Nifty 50

322.7

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionbanking sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score92/100 (STRONG). 0 positive flags, 2 concerns.
Historical Context36 similar technical setups. Average outcome: -6.5% decline. 0% positive.
Bank HealthROA 1.11% · PB 1.9 · Asset growth 11.6%.

Fundamental

92/100

STRONG

Trust

90/100

Verification

Coverage

44/100

LIMITED

Quick Take

Federal Bank scores 92/100 on fundamentals (strong). Federal Bank: BROAD EXPANSION regime.

Fundamental Score: 92/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 11.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE11.1%=
27.3%Net Margin
×
0.0xTurnover
×
10.0xLeverage

ROE of 11.11% is moderate leverage-driven and stable. Net margin of 27.3% × asset turnover of 0.04x × leverage of 10.0x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 27.3% means the company keeps ₹27.3 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.04x means the company generates ₹0.04 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 10.0x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

%

Net

27.3%

improving

Financial Health

Peer Comparison

Federal Bank is compared against 10 peers in the banking sector.

Bank Metrics

Return on Assets

1.11%

Benchmark: >1%

Efficiency Ratio

72.7%

Lower is better

Asset Growth

+11.6%

Year over year

PB Ratio

1.9x

Price to book

ROA of 1.11% is strong (benchmark: >1% for banks). Adequate but room for improvement. P/B of 1.94x — trading above book. Reasonable valuation for a bank.

Key Watchpoints

🟢

Breaks above ₹339 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹307 (-5%)

Further downside risk

🟢

Banking sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong ROA: ROA of 1.11% — above 1% benchmark for banks
✅ Strong Loan Book Growth: Assets growing 11.6% — loan book expansion

Risk Flags

⚠️ 2 Warning2 total flags
⚠️Working capital changes are 60% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Low promoter holding: 10%
Governance

No single controlling shareholder. Management may not be aligned with shareholders.

➡️ 2 flags — 0 positive, 2 warning. Mixed profile.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
18.1UNAVAILABLE
P/B Ratio
1.9HIGH
Market Cap
₹7782033.7L CrHIGH
From 52W High
101% of high
Sector Peers
10
Federal Bank Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight