FEDERAL BANK LTDUpdated FEDERAL BANK KEEPING LONG TARGET 190 TO 220
entry above 184, accumulate near 175 -180 levels hold few weeks hold few weeks SL below 170 on daily closing basis.
Price base shifting upwards,
Volume getting accumulated
RSI indicating positive strength
STRENGTH
• Strong Momentum: Price above short, medium and long term moving averages
• Rising Net Cash Flow and Cash from Operating activity
• New 52 week high today
• Effectively using its capital to generate profit - RoCE improving in last 2 years
• Efficient in managing Assets to generate Profits - ROA improving since last 2 year
• Increasing Revenue every Quarter for the past 4 Quarters
• Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
• Annual Net Profits improving for last 2 years
• Book Value per share Improving for last 2 years
• Company with Zero Promoter Pledge
• Stock gained more than 20% in one month
WEAKNESS
• Red Flag: High Interest Payments Compared to Earnings
• MFs decreased their shareholding last quarter
OPPORTUNITY
• Brokers upgraded recommendation or target price in the past three months
• Decrease in NPA in recent results
• Decrease in Provision in recent results
• RSI indicating price strength
THREAT
No Threat for this stock.
Federal Bank reported a strong business update for Q1FY2025 in terms of loan as well as deposit growth. Near-term business trends look comfortable for the bank except for NIMs. However, NIM contraction was lower than expected and the bank is hopeful that the rising share of highyield loans can offset higher cost of deposits going forward. The bank also has strong granular liability franchise with retail deposits (less than Rs. 2 crore) making up ~80% of overall deposits. Asset quality outlook remains stable thus reversal in return ratios & growth is unlikely however credit cost could see marginal uptick due to a steady increase in share of high-yielding assets.
Nevertheless, the bank is likely to sustain RoA of ~1.2%. Near-term focus is largely on the RBI’s approval for the appointment of new MD & CEO for the bank. Reports suggest that it has submitted the three names (2 internal/ 1 external) for the post of MD & CEO. Steady growth outlook: The bank is confident about its guidance of ~18% credit growth in FY2025E. Loan growth has been healthy across its segments, with retail showing good momentum as bank is gradually scaling up the share of higher yielding assets in its loan book, primarily through business banking, commercial banking, commercial vehicles, and credit cards along with steady traction in existing segment.
https://www.tradingview.com/chart/q6u02xev/?symbol=NSE%3AFEDERALBNK
Standard Disclaimer :- Not SEBI registered analyst , not sell / buy recommendation.
Trade active
first & second target achieved
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