Federal Bank Share Price Target From 2024 to 2030: Federal Bank is one of the major private sector banks in India. The bank has performed well financially with excellent reasons like a robust retail portfolio and prudent management practices. With its presence since 1931, the bank has emerged to be a preferred banking partner for various Indians, particularly south Indian natives. It offers an array of banking and financial services, which also encompasses diverse corporate banking and NRI banking services catering to all kinds of customer needs.
We dig deep into the share performance of Federal Bank briefly outlining its shareholding pattern while separately forecasting Federal Bank Share Price targets as of 2024 until 2030, working from financial analysis and prospects at large in the industry.
Current Federal Bank Share Price Performance Summary
Of the current year of growth for the Federal Bank stock, its performance can be said to be more or less impressive, but certainly nothing short of exemplifying good health for a bank in the market with a great flow of market sentiments. Here are the current day data of the bank:
- Open Price: โน197.00
- High Price: โน197.69
- Low Price: โน195.04
- Market Cap: โน48.43K Cr
- P/E Ratio: 11.78
- Dividend Yield: 0.61%
- 52-Week High: โน209.77
- 52-Week Low: โน139.40
- Current Price: โน197.43
- 1-Year Change: +33.94%
Federal Bank opened at โน197.00 and touched a high of โน197.69 in the last trading session. The market capitalization for the bank is at โน48.43K Cr. The bank stock has risen sharply by 33.94% against its price a year ago and thus well ahead of most of the other banking sector stocks. Its P/E stands at 11.78. At these levels, it is somewhat low, thereby indicating the bank stock is undervalued and thus appealing for a good growth play within the financial sector.
Analysis of Shareholding Pattern For Federal Bank Share Price
The shareholding pattern of Federal Bank is a very useful indicator for gauging the confidence level of various categories of investors. The shareholding of the bank up to the quarter ended September 2024 is as follows:
- Mutual Funds: 34.28%
- Foreign Institutions (FII/FPI): 27.72%
- Retail and Others: 25.09%
- Other Domestic Institutions: 12.90%
Key Observations For Federal Bank Share Price
- High Mutual Fund Interest: Federal Bank has the highest interest from mutual funds with a holding of 34.28% of the entire shares. This reflects the high confidence that home institutional investors have in the bank as a good investment opportunity to grow in the future.
- Foreign Institutional Investors (FIIs): FIIs still hold a significant stake of 27.72% in the bank. Though the share of FII reduced marginally from 28.63% to 27.72% during the quarter ended September 2024, the number of FII/FPI investors has increased from 398 to 423, which reflects improving investments at a wider level of international investors.
- Retail and Households: Retail investors hold 25.09%, with solid individual investor participation. Other domestic institutions held 12.90%. The same indicates stable participation of organizations in the domestic arena.
- Institutional Investor Lead: From 73.83% in the March quarter of 2024, institutional investors have increased holdings to 74.90% in the September 2024 quarter. This brings out increasing faith in future performance of Federal Bank.
Federal Bank Share Price Target from 2024 to 2030
From the in-depth analysis of Federal Bank’s financial performance, market trends, and industry outlook, here is the projected share price target for Federal Bank from 2024 to 2030:
Year | Target |
2024 | โน215 |
2025 | โน262 |
2026 | โน315 |
2027 | โน368 |
2028 | โน419 |
2029 | โน478 |
2030 | โน536 |
โน215 Federal Bank Share Price target for 2024
It is on price target for 2024 at โน215. Growth to be driven by strong retail lending focus and its strategic initiatives in the area of digital banking. Penetration in NRI segments, which are getting better, and also increasing credit portfolios are going to help in moving earnings up.
Target Federal Bank Share Price: โน262
Share price to touch around โน262 during 2025, respectively. Improvement in the digital capabilities of the bank as well as the continued expansion of its presence into untapped markets will bring forth the increase in price. Improved asset quality and higher NII would be supportive of the price increase.
Federal Bank Share Price Target at โน315 for 2026:
With its continuous loan book expansion in retail and potential rise in NRI, the share price is expected to increase to โน315 in 2026, as the profit pick-up is believed to be caused by an improvement in operational efficiency and a strong capital position.
Federal Bank Share Price Target For 2027: โน368
Given its stable strategy, lofty competitive position, commendable asset quality, and prudent PPOP growth, we expect the stock price to touch โน368 by 2027. With the bank’s constant endeavor to bring down the cost-to-income ratio and focus more on high-margin products, earnings growth will be sustained. Also, its digital banking services will push further customer acquisition and retention.
Federal Bank Share Price Target 2028: โน419
Price target for the year 2028 is accrued at โน419. It will be based on Federal Bank’s sound business model and diversified revenue streams. The increased focus of the bank towards non-interest income-generating sources like fees and commission would boost aggregate revenue.
2029 Federal Bank Share Price Target: โน478
The stock would, therefore, be expected to touch โน478 by 2029, supported by enhanced credit quality and a robust balance sheet. Careful risk management of the bank would also lead to growth in corporate lending, supporting the upward trend for the stock.
The long-term 2030 Federal Bank Share Price is placed at โน536; for that, it displays the growth expected under the strategic expansions and digital transformation of the Federal Bank. Robust customer-based growth and increasing market share of retail and SME will always help the bank reach this level of target.
Key Influencers on Federal Bank Share Price
- Digital Transformation: Focus on digitization has enhanced customer service and the general efficiency of operations for Federal Bank. Its robust position in the digital banking space is envisioned to fuel future growth.
- NRI Business Segment: The major portion of the deposits of the bank comes from NRIs, especially from the Middle East. Stable growth of NRI deposits is a key strength that offers stability to the overall deposit base of the bank.
- Asset Quality: Improvement in healthy asset quality maintained by the bank by reducing NPAs is critical. Improvement in asset quality will give a positive impact on profitability and investor confidence.
- Interest Rate Environment: Changes in interest rate directly affect Federal Bank’s NIM. Hence, a favorable interest rate environment will significantly boost the profitability as well as share price of the bank.
- Government and Regulatory Policies: Changes in lending norms and interest rate regulations have a bearing on the financials of Federal Bank.
Frequently Asked Questions For Federal Bank Share Price
1. Is Federal Bank a good long-term investment opportunity?
Yes, Federal Bank is good long term investment as its rich market presence, diversified portfolio, and constant financial performance make it a good entity for long-term investments.
2. Which are the major concerns/risks of investing in Federal Bank?
Interest rate risks, regulatory risks and asset quality concerns. Large scaling up of NPAs could be detrimental to profitability.
3. Why did the FII holdings decline in Q2 September 2024?
The FII holding declined from 28.63% to 27.72%. Being seen that FIIs do profit booking and portfolio rebalancing; therefore, the number of FIIs is on an upswing. Hence, the current money that is invested here translates to the sustained interest.
4. What could be the share price of Federal Bank by 2025?
The targets for the year-end in 2025 are reflected in the table below. As may be noted, projection remains at โน262, driven by good financial performance as well as growing digital adoption.
5. Would the share price of Federal Bank reach โน600 in 2030?
Looking at the current projection for 2030 at โน536, it would call for extraordinary financial performance, including a huge growth in lending, asset quality improvement and increased profitability.
The strong foundation and the good positioning by Federal Bank have helped the company to capitalize on the increasing demand for digital banking and financial services in India. The bank, with continued growth in its core segments and asset-quality improvement, should be good enough to achieve the projected share price targets. For those looking for an exposure in the banking sector, Federal Bank should be a strong candidate for long-term investment.