Fact based stock research
The Federal Bank (NSEI:FEDERALBNK)

INE171A01029

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

The Federal Bank stock research in summary

federalbank.co.in

ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), The Federal Bank (Diversified Banks, India) shares have lower financial characteristics compared with similar stocks. Shares of The Federal Bank are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), and are riskily financed (Safety Rank of 14, which means above-average debt burdens) but show above-average growth (Growth Rank of 62). ...read more

RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on The Federal Bank's financial characteristics. As the company The Federal Bank shows low value with an Obermatt Value Rank of 29 (71% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 62% of comparable companies (Obermatt Growth Rank is 62). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 14 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for The Federal Bank, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	62
Safety Rank	14
Combined Rank	18

Country	India
Industry	Diversified Banks
Index	Independent Boards Growth Markets
Size class	Small

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: The Federal Bank

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	53	47	32	29
GROWTH
GROWTH	83	85	91	62
SAFETY
SAFETY	25	21	34	14
SENTIMENT
SENTIMENT	43	77	25	^new
360° VIEW
360° VIEW	53	71	38	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better The Federal Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	53	47	32	29
GROWTH
GROWTH	83	85	91	62
SAFETY
SAFETY	25	21	34	14
COMBINED
COMBINED	67	51	56	18

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of The Federal Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), The Federal Bank shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for The Federal Bank. Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than 72% of comparable companies, indicating a low value concerning The Federal Bank's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 41, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of The Federal Bank. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 36 and Dividend Yield, which is lower than 86% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on The Federal Bank's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for The Federal Bank? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as The Federal Bank? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. The Federal Bank may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	44	38	30	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	69	51	48	36
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	59	56	44	41
DIVIDEND YIELD
DIVIDEND YIELD	32	30	22	14
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53	47	32	29

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of The Federal Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 62 (better than 62% compared with alternatives), The Federal Bank shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for The Federal Bank. While Sales Growth ranks at 92, professionals currently expect the company to grow more than 92% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 34, which means that, currently, professionals expect the company to grow its profits less than 66% of its competitors, and Capital Growth has a low rank of 35. Historic stock returns were also below average with a current Stock Returns rank of 37 which means that the stock returns have recently been below 63% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 62, is a buy recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	86	85	91	92
PROFIT GROWTH
PROFIT GROWTH	31	55	45	34
CAPITAL GROWTH
CAPITAL GROWTH	77	69	99	35
STOCK RETURNS
STOCK RETURNS	75	63	63	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	83	85	91	62

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of The Federal Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company The Federal Bank has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of The Federal Bank is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for The Federal Bank and the other two below average. Leverage is at a rank of 62 meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors.Refinancing is at a rank of 13, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 87% of its competitors. Liquidity is at a rank of 34, meaning that the company generates less profit to service its debt than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), The Federal Bank has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of The Federal Bank are on the safer side. Investors may have a short-term debt challenge and liquidity issues with The Federal Bank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	76	52	50	62
REFINANCING
REFINANCING	21	43	45	13
LIQUIDITY
LIQUIDITY	26	33	34	34
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	25	21	34	14

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of The Federal Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	85	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	60	52	8	^new
PRO HOLDINGS
PRO HOLDINGS	4	58	9	^new
MARKET PULSE
MARKET PULSE	44	58	49	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	43	77	25	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for The Federal Bank.
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