Fedbank Financial Services Ltd - Stock Valuation and Financial Performance

BSE: 544027 | NSE: FEDFINA | Finance - NBFC | Small Cap

Fedbank Financial Share Price

124.40 0.80 0.65%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Fedbank Financial

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Fedbank Financial Services stock performance -

mw4me loader
P/E Ratio (SA):
25.25
Market Cap:
4,549 Cr.
52-wk low:
108.9
52-wk high:
153.5

Is Fedbank Financial Services Ltd an attractive stock to invest in?

1. Is Fedbank Financial Services Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Fedbank Financial Services Ltd is a average quality company.

2. Is Fedbank Financial Services Ltd undervalued or overvalued?

The key valuation ratios of Fedbank Financial Services Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Fedbank Financial Services Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Fedbank Financial Services Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Fedbank Financial:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Fedbank Financial Services Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)68.577.388.21331972554506928691,1791,179
YoY Gr. Rt. %-12.9%14%50.4%48.3%29.6%76.7%53.8%25.7%35.6%-
Adj EPS (₹ ) -0.20.30.71.21.61.51.42.13.25.64.9
YoY Gr. Rt. %-NA97%83.1%36.1%-5.6%-6.5%49%51.2%73.9%-
BVPS (₹ )1010.310.912.113.720.125.228.635.741.771.2
YoY Gr. Rt. %-3.3%6.2%10.9%12.7%47%25.4%13.6%24.6%16.8%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)-0.71.52.22.82.521.31.31.72.30

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income37.2%43.1%37.9%35.6%
Adj EPSNA28.2%57.6%73.9%
BVPS17.2%25%18.3%16.8%
Share Price - - - -

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)-4.38.213.91715.713.88.78.911.915.315.3
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)-1.53.36.110.312.69.76.88.110.514.56.9

Recent Performance Summary

Total Income has increased 37.86 CAGR in last 3 years

Net Profit has increased 57.62 CAGR in last 3 years

Total income growth is not so good in last 4 quarters

Return on Equity has declined versus last 3 years average to 8.60%

Latest Financials - Fedbank Financial Services Ltd

Standalone Consolidated
TTM EPS (₹) 4.9 -
TTM Sales (₹ Cr.) 1,179 -
BVPS (₹.) 71.2 -
Reserves (₹ Cr.) 2,261 -
P/BV 1.73 -
PE 25.25 -
From the Market
52 Week Low / High (₹) 108.90 / 153.50
All Time Low / High (₹) 108.90 / 153.50
Market Cap (₹ Cr.) 4,549
Equity (₹ Cr.) 369.4
Face Value (₹) 10
Industry PE 32.5

Management X-Ray of Fedbank Financial:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Fedbank Financial

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income7081901351982594676988841,228
Interest Income6977881331972554506928691,179
Other Income 1412141761449
Expenditure 73737199148210411621744969
Interest Expense 1621254877112201313348472
Operating Expenses 514743496691186233310438
Provisions 64225724758759
Exceptional Items 000000000-15
Profit Before Tax -39193549495677139243
Taxes 02713191417153663
Profit After Tax -36122331353962103180
Adjusted EPS (₹)-0.20.30.61.21.61.51.42.13.25.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital1891962082302604626918351,1541,356
Share Capital 190190190190190230273290322322
Reserves -161840702324185458321,034
Minority Interest0000000000
Long Term Borrowings-1271302036599762,9463,8394,5416,603
Current Liabilities 1912473015665586874427728301,091
Trade Payables44112794626
Short term borrowings164227246433305290267472448516
Other Liabilities-167-231-247-434-307-297-276-476-454-542
Total Liabilities 3794706391,0001,4772,1254,0805,4466,5249,049

Assets

Non Current Asset 1162063115349041,358115151171218
Loan Asset 0000000000
Other Non Current Asset 1162063115349041,358115151171218
Current Asset 2632643284665737673,9645,2956,3538,831
Current Investment014009134132514681
Other Current Asset2632503284665637543,9235,2635,8398,150
Total Assets 3794706391,0001,4772,1254,0805,4466,5249,049

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 130-62-132-321-418-453-1,393-371-578-1,474
Cash Flow From Investing Activity -2-914-1-9-3-72-71-417-130
Cash Flow From Financing Activity -132711153224375011,5998255351,632
Net Cash Flow -40-31945133384-46028
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)0011221236
DPS (₹)0000000000
BVPS (₹)10101112142025293642

Performance Ratios

ROA (%)-0.71.52.22.82.52.01.31.31.72.3
ROE (%)-1.53.36.110.312.69.76.88.110.514.5
ROCE (%)3.07.48.310.810.79.38.68.68.69.8

Valuation Parameters

Price/Book(x)0.00.00.00.00.00.00.00.00.00.0

Fedbank Financial Services Ltd Stock News

Fedbank Financial Services Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Fedbank Financial on 12-Apr-2024 10:20 is ₹124.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Fedbank Financial stood at ₹4,549.
The latest P/E ratio of Fedbank Financial as of 12-Apr-2024 10:20 is 25.25.
The latest P/B ratio of Fedbank Financial as of 12-Apr-2024 10:20 is 1.73.
The 52-week high of Fedbank Financial is ₹153.5 and the 52-week low is ₹108.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Fedbank Financial is ₹1,179 ( Cr.) .

About Fedbank Financial Services Ltd

Fedbank Financial Services is a retail focused non-banking finance company (NBFC) promoted by The Federal Bank Limited. The company is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. The ESEI and MSME segment is largely unaddressed by lending institutions in India. This segment provides the company with a sizeable opportunity to rapidly grow and expand further. It has a well-tailored suite of products targeted to match its customers’ needs, which includes mortgage loans such as housing loans; small ticket loan against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans. 

It is promoted by Federal Bank, which, adds a degree of trust among its stakeholders. Federal Bank will continue to own more than 51% of its outstanding share capital post the completion of the Offer. The company’s long operating history, track record, management expertise and the “Federal Bank” brand have enabled it to establish a competitive position in the markets it serves and create trust among its customers, lenders, regulators and investors.

The company also has a “Phygital” doorstep model, a combination of digital and physical initiatives, for providing customized services to its customers across all of its products. This also helps the company to constantly remain in touch with its customers. Technology is the core building block of its underwriting model which combines electronic data and physical information and document collection.

Business area of the company

Fedbank is a retail-focused non-banking finance company, with the second lowest cost of borrowing among the micro, small, and medium enterprises (MSMEs), gold loan, and MSME & gold loan peer set in India in Fiscal 2023. The company's clientele comes mainly from the MSME and emerging self-employed individuals (ESEI) sectors. The company's product range includes mortgage loans such as housing loans; small ticket loans against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans. The company also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to customers across all the products.

Awards, accreditations, and accolades

  • 2016: Awarded second place in 14th National Awards for Excellence in Cost Management in ‘banking, financial services and insurance’ category by the Institute of Cost Accountants of India
  • 2019: Awarded the ‘Certificate of Responsible Recycling’ by E-Incarnation Recycling Private Limited.
  • 2020: Certified as a ‘Great Workplace’ by ‘Great Place to Work’ by Great Place to Work Institute, India.
  • 2021: Ranked 16th in Best Places to Work in India 2021 Employee Choice Awards by AmbitionBox.
  • 2021: Certified as a ‘Great Workplace’ by ‘Great Place to Work’ by Great Place to Work Institute, India.
  • 2021: Received recognition for ‘Commitment to Being a Great Place to Work’ by Great Place to Work Institute, India.
  • 2022: Certified as a ‘Great Workplace’ by Great Place to Work Institute India.
  • 2022: Awarded by Chamber of Indian Small and Medium Enterprises.
  • 2023: Awarded ‘Top 50 India’s Best Workplaces in BFSI 2023’ by Great Place to Work Institute, India.
  • 2023: Awarded ‘Banking Frontiers - Best Talent, Diversity and Cultural Initiative'

Major events and milestones

  • 1995: Incorporation of the company
  • 2007: Commenced business of distribution of housing loans, home equity mortgage loans, personal car loans and personal loans for the Promoter
  • 2010: Received license to operate as an NBFC from the RBI
  • 2011: Commenced the business of distribution of gold loans
  • 2012: Commenced the business of medium ticket LAP
  • 2015: Loan book of the company crossed Rs 5,000 million
  • 2015: Crossed 100 branches
  • 2015: Commenced the business of construction finance offering
  • 2016: Net worth of the company crossed Rs 2,000 million
  • 2017: Commenced business of small ticket LAP and structured finance products
  • 2017: Loan book of the company crossed Rs 10,000 million
  • 2018: Commenced business of distribution of unsecured business loans
  • 2018: Received investment of Rs 1,686.00 million by True North
  • 2019: Crossed 200 branches
  • 2019: Net worth of the company crossed Rs 5,000 million;
  • 2019: Loan book of the company crossed Rs 30,000 million
  • 2020: Crossed 300 branches
  • 2020: Maiden Subordinated liabilities issuance of Rs 2,500 million
  • 2020: Initiated digital transformation journey
  • 2020: Loan book of the company crossed Rs 40,000 million
  • 2021: Crossed 500 branches
  • 2021: Net worth of the company crossed Rs 10,000 million
  • 2021: Started operations of door-step gold loans
  • 2021: Loan book of the company crossed Rs 50,000 million
  • 2021: Shifted the registered office of the Company from Aluva, Kerala to Mumbai, Maharashtra
  • 2022: Crossed 550 branches
  • 2022: Net worth of the company crossed Rs 13,000 million
  • 2022: Loan book of the company crossed Rs 70,000 million
  • 2022: Door-step gold loans AUM crossed Rs 1,000 million
  • 2022: Credit rating of the company was upgraded from AA- to AA by CARE Ratings Limited
  • 2023: Net worth of the company crossed Rs 13,500 million
  • 2023: Loan book of the company crossed Rs 80,000 million
  • 2023: Issuance of MLD amounting to Rs 2,000 million
  • 2023: Issuance of subordinated debt of Rs 2,000 million

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