Fundamental Result Update

Federal Bank - Q3FY18 Results Update



For the quarter ended Q3 FY17 Federal bank reported strong profitability. The net profit stood at Rs.260 cr vs. Rs.206 cr in the corresponding quarter of the previous year and Rs.264 cr in the sequential quarter.

Valuation: Federal Bank reported consistent performance backed by NII growth and better operational efficiency. Asset quality deteriorated with fresh slippages at 2% of loans. We expect the bank to accelerate CASA accretion and also to focus on digitalization with continuous growth in active digital user and increasing FedMobile transaction volume. At CMP stock trades at P/ABV multiple of 2.0x on FY 19E. We have valued the stock at P/ABV multiple of 2.25x & arrived at fair value of Rs 120 per share and have ‘ACCUMULATE’ rating.


Tags: Technical


Search Reports

SEARCH

Reports

Daily Market Update...

On 21/02/2018 markets opened...

Read More

Daily Currency Market...

HIGHLIGHTS: The U.S. dollar...

Read More

Daily Metal & Agro Buzz

HIGHLIGHTS: An upswing in...

Read More

Daily Market Update...

On 20/02/2018 markets opened...

Read More

Daily Currency Market...

HIGHLIGHTS: The U.S. dollar...

Read More

LT

INTRADAY CALL: SELL...

Read More

BAJFINANCE

INTRADAY CALL: BUY...

Read More

RELIANCE

INTRADAY CALL:  BUY...

Read More

HCLTECH PUT STRIKE 920

POSITIONAL CALL FOR 4-5 DAYS...

Read More

Infosys

Company Overview Infosys...

Read More

Subscribe to newsletter

Request a call back

DISCLAIMER: Investment in markets is subject to market risk, the views and investment tips expressed by our research entity on arihantcapital.com are product of their own. Whilst meticulous care has been taken to ensure that the facts stated are accurate and opinions given are fair and reasonable, neither the analyst nor any employee of our company is in any way is responsible for its contents and nor is its accuracy or completeness guaranteed. ArihantCapital.com offers the views and opinions for assistance only and these are not intended and must not be alone taken as the basis for an investment decision. We advise the users to check with certified experts before taking any investment decisions. The investments discussed in this material may not be suitable for all investors. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material.