Federal Bank has been providing an extensive range of financial services for several decades, positioning itself as one of India’s top private sector banks. The bank has consistently witnessed a stable growth trajectory and maintained a robust financial standing, attracting investor interest to its share price target as a gauge of its potential growth.
This article will delve into Federal Bank’s share price forecast from 2023 to 2030 and assess whether it presents a favorable investment opportunity.
We will also examine the bank’s recent accomplishment of issuing the largest sum of money in a climate loan and its potential impact on the bank’s future growth trajectory.
Q4 Results of Federal Bank
Let’s take a quick look at the results for Q423 that Federal Bank recently provided:
- Comparing Q4FY23 to Q4FY22, Federal Bank’s consolidated net profit increased by 62.4% to 953.91 crore. The private sector bank reported consolidated total revenue of 5,780.78 crore for the quarter ended in March, up 38.6% from the same quarter of FY22’s 4,170.55.
- When viewed separately, the net profit increased 67% year over year to 902.61 crores from 540.54 crores. The overall revenue increased 38.2% year over year, from 3,948.24 to 5,454.60 crore.
- The bank’s provisions went from 75.24 crore to 116.6 crore, a 55% year-over-year rise, and a 41.3% sequential decline.
- In comparison to Q4FY22, the net interest income (NII) increased 25.2% year over year to 1,909.3 crore.
- The gross NPA increased by 0.9% from 4,147.9 crores to 4,183.8 crores on a sequential basis. In the meanwhile, net NPA for the March quarter decreased 1.9%, from 1,228.6 crore to 1,205 crore.
- From 1,81,700.59 crore on March 31, 2022, to 2,13,386.04 crore on March 31, 2023, deposits climbed by 17.44%. As of March 31, 2023, Gross Advances were 1,77,376.53 crore, up 20.14% from 1,47,639.45 crore on the same date in the previous year.
Latest news about Federal Bank
➤ A final dividend of Re 1 equity share with a face value of 2 per share (a 50% dividend rate) has been recommended by the bank’s board of directors for payment in FY23.
➤ The bank’s whole business climbed by 18.74% to 3,87,832.93 crore as of March 31, 2023 from 3,26,628.92 crore as of March 31, 2022, according to an exchange filing.
➤Shyam Srinivasan, the MD and CEO of private sector lender Federal Bank, has chosen investment banks Kotak Mahindra Capital, Axis Capital, BofA Securities, and JP Morgan as advisers as the company prepares for a major fund-raising effort in which it hopes to raise up to Rs 4,000 crore.According to these sources, the projected capital issue to support retail expansion and inorganic activities would probably be carried out through both the QIP and preferential allotment avenues.
➤‘Mathrubhumi’ and Federal Bank together inaugurated the ‘Go Green’ project, which officially began on Friday. Forest Minister AK Saseendran inaugurated the program at the state level by distributing saplings to Kozhikode students.
You can buy Federal Bank shares from the following trading platforms:
|When||Maximum Price||Minimum Price|
The table provided showcases Federal Bank’s predicted share prices for each month of 2023. The maximum and minimum prices listed indicate the expected price range for the month. As per the table, Federal Bank’s share price is expected to show an uptrend in the latter half of 2023. In May, the maximum and minimum prices are predicted to be ₹130.29 and ₹94.84, respectively. According to indicators such as Stochastic RSI and RSI, the stock is expected to fall for a bit making it a good opportunity for investors to invest in this company and enjoy some gains.
In contrast, by December 2023, the maximum and minimum prices are expected to rise to ₹240.60 and ₹185.08, respectively, indicating an overall bullish growth trajectory. This represents a substantial growth percentage from the initial months of the year, with an increase of around 78% in the maximum price and over 78% in the minimum price by the end of the year.
These predicted figures suggest that Federal Bank could present a potentially lucrative investment opportunity in 2023 for investors seeking a profitable stock.
|When||Maximum Price||Minimum Price|
The provided table displays the predicted Federal Bank share prices for each month in 2024, with the maximum and minimum prices reflecting the expected price range for the month. In January 2024, the maximum and minimum prices are predicted to be ₹253.27 and ₹194.82, respectively. By December 2024, the maximum and minimum prices are predicted to rise to ₹336.85 and ₹259.12, respectively, indicating an overall uptrend in the latter half of the year.
On average, the predicted share prices suggest an upside potential for investors. It is important to note that these are just predictions and the actual stock prices may vary due to various market conditions and external factors.
Based on the predicted share prices, Federal Bank could potentially be a favorable investment opportunity in 2024. However, it is recommended that investors conduct further research and analysis before making any investment decisions.
|When||Maximum Price||Minimum Price|
According to the above table, Federal Bank’s share price target for 2025 shows a gradual increase in the maximum and minimum prices compared to the previous years. The maximum price is expected to reach ₹408.61 while the minimum price is expected to be ₹314.31.
The average target price for the year is around ₹355.13, which suggests an upside potential of approximately 25% from the current price level. However, it is worth noting that some months, such as April and May, are projected to be bearish for the stock.
\Overall, despite some bearish periods, Federal Bank’s share price is expected to continue its upward trajectory, providing investors with potentially strong returns in 2025.
|Year||Maximum Price||Minimum Price|
As we look towards the future, the Federal Bank’s share price target from 2026 to 2030 shows a mixed trend. In 2026, the maximum price target is expected to reach ₹286.03 while the minimum price target is expected to be around ₹200.22. This indicates a potential bearish trend for the year.
However, in 2027, the maximum price target is expected to increase to ₹243.12 with a minimum price target of ₹170.19, indicating a potential bullish trend. In 2028, the maximum price target is expected to be significantly higher at ₹437.62 with a minimum price target of ₹306.33, showing a potential uptrend.
The year 2029 is expected to have a high maximum price target of ₹898.94 with a minimum price target of ₹629.26, indicating significant potential returns.
Finally, in 2030, the maximum price target is expected to reach ₹1,001.09 with a minimum price target of ₹700.76, highlighting continued growth potential for the Federal Bank’s shares.
Financial Condition of Federal Bank: Last 5 years
|Profit before tax||1,393.20||1,960.10||2,059.96||2,208.57||2,646.27|
|Price to earning||18.81||14.55||5.18||9.09||10.40|
The financial statement of Federal Bank for the last five years shows a steady growth trend in revenue and profit. The company’s sales revenue grew from ₹9,914.90 crore in March 2018 to ₹14,381.53 crore in March 2022, with a percentage growth rate of 45.37%. However, the expenses also increased during the same period, but not as rapidly as the revenue, resulting in a rise in operating profit from ₹6,584.13 crore in March 2018 to ₹8,623.62 crore in March 2022.
The profit after tax (PAT) also showed a consistent increase from ₹935.44 crore in March 2018 to ₹1,969.79 crore in March 2022.
The maximum sales revenue for the period was ₹14,381.53 crore, while the minimum was ₹9,914.90 crore. The maximum PAT was ₹1,969.79 crore, and the minimum was ₹935.44 crore. The company’s dividend payout ratio remained relatively stable at around 21% in the last four years, except for a significant drop to 0% in March 2020.
The company’s operating profit margin (OPM) also showed consistent growth from 66.41% in March 2018 to 59.96% in March 2022, indicating a steady improvement in operational efficiency. However, the price-to-earnings (P/E) ratio varied significantly during the period, being at 12.08 in May 2023. The Price-to-Book ratio currently stands at 1.39, whereas 52-week high and 52-week low is currently at 143.4 and 82.5 respectively. Adding to the same, the company’s Earning Per Share is now 10.44.
Overall, Federal Bank’s financial statement reflects a positive growth trend in revenue, profit, and operational efficiency, indicating a healthy financial position.
Axis Securities has given a “buy” recommendation for Federal Bank with a projected target price of Rs 160.
HDFC Securities is optimistic about Federal Bank, giving it a buy rating and a target price of Rs 175.
Fundamental Radar has given a buy suggestion for Federal Bank with an expected price of Rs.170
Motilal Oswal has given a buy recommendation for Federal Bank with a target price of RS.155
Sharekhan believes that In its research report, Federal Bank gave the stock a buy recommendation and set a target price of Rs 170.
It is anticipated that Federal Bank per share price will increase to ₹240.60 by the end of 2023.
The share price target of Federal Bank for 2025 might be around ₹408.61.
The per share price of Federal Bank might reach around ₹1,000 by the end of 2030.
What is the market capitalisation of Federal Bank?
As of May 2023, Federal Bank has a market capitalization of ₹26,714 crore.
Based on the financial statements, Federal Bank has shown a consistent growth in revenue and profit over the last five years, indicating a positive outlook for the bank’s future.
- NMDC Share Price Target 2023 to 2030: Can NMDC touch 600 INR by 2030?
- Tata Elxsi Share Price Target 2023 to 2030: Can it touch 15,000 INR by 2025?
- Tanla Platforms Share Price Target 2023 to 2030: Can (NSE: TANLA) touch 800 INR in 2023?
Over the past five years, Federal Bank has consistently increased its revenue and profit, with compound annual growth rates (CAGR) of 11.8% and 18.9%, respectively. Over this time, the bank has also kept up a solid dividend payment ratio of about 20%.
The share price target for the years 2023 to 2030, with a maximum price objective of 1,001.09 and a minimum price target of 170.19, represents a potential return on investment. Federal Bank shares appear to be attractively valued with a price-to-earnings ratio of 12.08, and they present an alluring investment option for those looking for long-term growth potential.
Therefore, it can be said that Federal Bank shares are worthwhile to consider for investment reasons based on the bank’s outstanding financial performance.
What did we learn?
- 1 Q4 Results of Federal Bank
- 2 Latest news about Federal Bank
- 3 How to buy Federal Bank shares?
- 4 Share Price Prediction of Federal Bank: 2023 to 2030
- 5 Financial Condition of Federal Bank: Last 5 years
- 6 Federal Bank share price target by Experts
- 6.1 Federal Bank share price target by Axis Securities
- 6.2 Federal Bank share price target by HDFC Securities
- 6.3 Federal Bank share price target by Fundamental Radar
- 6.4 Fundamental Radar has given a buy suggestion for Federal Bank with an expected price of Rs.170
- 6.5 Federal Bank share price target by Motilal Oswal
- 6.6 Federal Bank share price target by Sharekhan
- 7 FAQS
- 8 Conclusion