Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic focus on gold loans and improved asset quality.
Basis of our Recommendation
Fedbank Financial Services is poised for robust growth, primarily driven by a strategic focus on gold loans, which has resulted in enhanced profitability and asset quality. This positive trajectory is expected to continue into FY27, supported by strong credit growth.
Why We Like This Stock
- Strong credit growth driven by strategic pivot towards gold loans
- Improved profitability and asset quality
- Positive outlook for FY27
Things To Watch Out For
- nan
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 897 | 1,183 | 1,345 | 1,610 | 1,896 |
| Profit Before Tax (Cr.) | 282 | 261 | 461 | 556 | 665 |
| PBT Margin | 31.5% | 22.0% | 34.3% | 34.5% | 35.1% |
| Net Profit (Cr.) | 252 | 202 | 341 | 413 | 494 |
| EPS | 6.7 | 5.4 | 9.1 | 11.0 | 13.2 |
Company Overview
Show Company Profile
Fedbank Financial Services Limited, a non-banking finance company (NBFC), provides financing services to individuals and businesses in India. The company operates through three segments: Distribution, Retail Finance, and Wholesale Finance. The company offers housing, personal car, personal, home equity mortgage, gold, SME, business, unsecured business, mortgage, and retail loans. It also provides loans against property and retail asset products; construction finance to developers; and loans to other NBFCs. In addition, the company provides insurance products. Fedbank Financial Services Limited was incorporated in 1995 and is based in Mumbai, India. Fedbank Financial Services Limited is a subsidiary of The Federal Bank Limited.