Fedbank Financial Stock Price Analysis and Quick Research Report. Is Fedbank Financial an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Fedbank Financial stock price today is Rs 117.23. To understand the functions of the Fedbank Financial better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Fedbank Financial is Rs 244.7 Cr and the compounded growth of profit in the past 3 years is 58.3049663586109 %. The PAT margin of Fedbank Financial is 15.5147 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Fedbank Financial , the EPS grew by 18.3838 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Fedbank Financial has a average ROE track record. The ROE of Fedbank Financial is at 13.6353 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Fedbank Financial is worth at the current levels at Rs 117.23. The stock is trading at a current P/E ratio of 17.1185 and the average historical P/E for the last 5 years was 3.4237.

• P/B ratio can be one of the best metrics to value such companies. Currently, Fedbank Financial is trading at a P/B of 1.7161 . The average historical P/B of Fedbank Financial for the last 5 years was 0.37262. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Fedbank Financial is Rs 117.23. One can use valuation calculators of ticker to know if Fedbank Financial share price is undervalued or overvalued.