Why is Federal Bank falling/rising?
As of 14-Aug, Federal Bank Ltd's stock price is at 195.95, down 0.13%, and has underperformed its sector. Despite a strong long-term growth outlook, recent negative quarterly results and a bearish trend have led to a significant decline in its stock price over the past week and month.
As of 14-Aug, Federal Bank Ltd's stock price is currently at 195.95, reflecting a decrease of 0.25, or 0.13%. The stock has underperformed its sector by 0.42% today and has experienced a trend reversal after two consecutive days of gains. 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 declined by 1.28%, and it has also seen a significant drop of 6.93% over the past month. Despite a strong long-term growth outlook with a 20.15% CAGR in net profits and a low gross NPA ratio of 1.91%, recent negative quarterly results, including a 14.6% fall in PAT, have contributed to the stock's downward movement.In the broader market context, the Sensex has only slightly declined by 0.03% over the past week, contrasting with Federal Bank's more significant drop. While the stock has shown impressive long-term growth over three and five years, outperforming the benchmark, its recent performance has been lackluster, with a year-to-date return of -1.98% compared to the Sensex's gain of 3.15%. The high institutional holdings at 75.04% suggest confidence from larger investors, but the stock's expensive valuation, indicated by a Price to Book Value of 1.4 and a high PEG ratio of 12.3, may deter new investment, further influencing its current price decline.
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