Why is Federal Bank falling/rising?

Aug 12 2025 09:24 PM IST
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As of 12-Aug, Federal Bank Ltd's stock price is at 196.15, showing a slight increase but trading below all key moving averages, indicating a bearish trend. Despite strong lending practices and high institutional holdings, the stock's negative quarterly results and high valuation may deter retail investors.
As of 12-Aug, Federal Bank Ltd's stock price is currently at 196.15, reflecting a slight increase of 0.05, or 0.03%. The stock has shown a trend reversal by gaining after two consecutive days of decline, outperforming its sector by 1.03%. However, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past week, the stock has increased by 0.10%, while it has declined by 5.40% over the past month. Despite strong lending practices and a low Gross NPA ratio of 1.91%, the stock faces challenges due to negative quarterly results, including a 14.6% drop in PAT and the lowest operating profit to net sales ratio. The high institutional holdings at 75.04% suggest confidence from larger investors, but the stock's expensive valuation and a PEG ratio of 12.4 may deter some retail investors.

In the broader market context, Federal Bank's short-term return of +0.10% over the past week contrasts with the Sensex, which has declined by 0.59% during the same period. While the stock has shown resilience in the short term, its year-to-date performance remains negative at -1.88%, compared to the Sensex's positive return of +2.68%. This indicates that while Federal Bank is experiencing a minor uptick, it is still underperforming relative to the broader market trends, which may be influencing investor sentiment and participation.
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