Our 3rd company in the Series of best stocks below Rs. 100 in India 2021 is Federal Bank Ltd
Let’s start with the Company profile
Company Profile :
The Federal Bank Limited is a banking company. The Company operates through four segments: Treasury, Corporate or Wholesale Banking, Retail Banking and other banking operations. Federal Bank Limited is a major Indian commercial bank in the private sector having 1200+ branches and 1900+ ATMs/Recyclers spread across different states in India. Today the bank is present in 25 States, Delhi NCT and 4 Union Territories and the bank is listed in BSE, NSE and London Stock Exchange.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹18,437. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 11.08
Sector PE Ratio: 26.42
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.10
Sector PB Ratio : 2.29
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.76%
Sector Dividend Yield : 0.54%
Dividend Yield of this company is High than Sector. Dividend of this company is Average than the peers of this company.
ROE: 10.08%
ROCE: 6.15%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average.
According to above data, this company is looking fundamentally Average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 16,271.94 | 1,664.33 |
| 2020 | 15,472.20 | 1,580.19 |
| 2019 | 12,970.66 | 1,316.28 |
| 2018 | 11,075.12 | 935.44 |
You can see the company growth clearly in the above table, in 2019 Net profit was 1,316.28 Cr. only and in 2020, It increased to 1,580.19 Cr. and in 2021, it is increased to 1,664.33.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 1,88,593.71 | 1,68,648.64 | 1,47,290.81 | 1,27,158.63 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 1,88,593.71 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 11,048.42 | 3,576.11 | 7,728.47 | -5,146.52 |
From the above table, You can see company have only 11,048.42 Cr. free cash flow while the company have 1,88,593.71 Cr. debt. in 2021. So this company have not much free cash flow in comparison to debt.
We should also check the Share Holding patterns of the company.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Retail & Others | Other Domestic Institutions | Mutual Funds | |
| Jul 2021 | 0 % | 27.55% | 30.76% | 9.67% | 32.02% |
| Jun 2021 | 0 % | 24.05% | 32.51% | 10.85% | 32.59% |
| Mar 2021 | 0 % | 24.51% | 33.45% | 11.81% | 30.23% |
| Dec 2020 | 0 % | 21.69% | 34.36% | 14.05% | 29.90% |
Above table showing there is no Promotors holding. FIIs increased holding in July 2021 from 24.05%(Jun 2021) to 27.55% , retail investor is 30.76% ,other domestic Institutions have 9.67% holding and Mutual have 32.02% holding.
Now We’ll check the return of the company, This company started from Rs. 1.36 at 19 Jan 2000. This company given 7271% returns in last 21 years from 2000 to 4 Aug 2021. In last 1 year company given 67% return to their investors.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 75 to 80
Target: 110 (50% Upside)
Time Horizon: 1 Year
Risk Profile: Moderate Risk (Stock is 2.46x as volatile as Nifty)
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Hope you liked our 3rd episode of best stock below Rs. 100 in 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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