Federal BANK LTD

Federal Bank Ltd (FEDERALBNK) is a mid-cap Financial Services company valued at ₹83,610 crore operating in Private Sector Bank on the NSE and BSE.

Recent price move

Federal Bank Ltd last traded at ₹338, modestly up 0.90% on the day.

Recent developments

On 2026-09-27, the company announced a fundraising activity through an alteration of capital, which is a neutral event for the business and does not signal immediate risk or opportunity.

Financial performance

The company's annual net profit rose 6.1% to ₹4,491 crore, while the latest quarter's net profit surged 37.0% to ₹1,302 crore compared to the same quarter a year earlier. Profit margins remain stable at 15.1%, but return on equity and return on capital employed are low at 10.6% and 5.9% respectively, indicating limited efficiency in generating returns from equity and capital.

Valuation multiples

The stock trades at 19.1 times earnings, broadly in line with the Financial Services median of 19.3, 2.23 times book value. It yields 0.3%.

Things to watch

The company's return on capital employed is 5.9%, which is below the industry average, suggesting inefficient use of capital. The stock is 11.2% below its 52-week high, indicating a pullback from recent peak levels. The company is almost debt-free, but this may limit its ability to expand or invest without external funding.

Where it stands

The company has shown strong profit growth in both annual and quarterly terms, with net profit rising 6.1% annually and 37.0% in the latest quarter. However, its return on capital employed remains low, and the stock is trading below its 52-week high. The most significant figure is the latest quarter's net profit, which reflects improved performance.

Summarised by DocStoX's model on 2026-10-10 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.