FEDERALBNK.NS (Federal Bank NSE) +8.40% Jan 16 2026: earnings point to margin recovery
FEDERALBNK.NS stock rose 8.40% to INR 270.25 on Jan 16 2026 after the bank’s earnings release, led by stronger margins and a volume surge of 66,835,622 shares. The move followed the earnings announcement timed for 16 Jan 2026 and pushed the stock above its 50-day average of INR 255.14. Traders priced in improved fee income and controlled credit costs; valuation sits at a P/E of 15.45 and EPS of 15.98. We use Meyka AI’s real-time signals and sector context to explain what the numbers mean for investors in India on the NSE
FEDERALBNK.NS stock: earnings reaction and price move
The immediate market reaction was a +8.40% intraday gain to INR 270.25, with a day low of INR 247.45 and day high of INR 278.40. Volume at 66,835,622 shares was nearly seven times the average volume of 9,592,056, showing institutional and retail participation. Markets moved after the earnings announcement on 16 Jan 2026 and priced in better operating margins and steady loan growth; this explains the sharp jump from the previous close of INR 249.30.
Key financials and valuation for FEDERALBNK.NS stock
Federal Bank’s trailing metrics show a P/E of 15.45, PB of 1.71, and ROE of 11.61%, which place it below big private banks on valuation but in line with regional peers. Book value per share is INR 144.15 and EPS is 15.98, supporting the current price from a fundamental angle. Investors should note market cap of INR 607,056,756,697, a 50-day average price of INR 255.14, and 200-day average of INR 216.79, indicating secular strength over 200 days.
Technical view and volume signals on FEDERALBNK.NS stock
Technicals show momentum divergence: RSI at 43.05 and MACD histogram negative, but ADX at 42.39 signals a strong trend. Bollinger Bands place the middle band near INR 263.24 and the upper band at INR 271.23, so the close at INR 270.25 is near the upper band. The large volume spike with OBV at 249,496,329 supports the price move, while momentum oscillators suggest short-term pullback risk after a sharp rise.
Meyka AI grade and model forecast for FEDERALBNK.NS stock
Meyka AI rates FEDERALBNK.NS with a score out of 100: 74.18 — Grade B+ (BUY). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Meyka AI’s forecast model projects a monthly: INR 256.79, yearly: INR 262.55, and 3-year: INR 326.91. Compared with the current price of INR 270.25, the model implies a monthly downside of -4.98%, a yearly downside of -2.85%, and a 3-year upside of +20.98%. Forecasts are model-based projections and not guarantees.
Analyst view, risks and sector context for FEDERALBNK.NS stock
Within India’s regional banks, Federal Bank trades cheaper than large private peers on P/E but faces risks in interest coverage (interest coverage at 0.40) and operating cash flow trends. Sector averages show a higher ROE near 11.49% and average PB of 2.77, placing Federal Bank slightly below sector valuation. Key risks include credit-cost volatility, margin compression if deposit rates rise, and macro slowdowns. Opportunity lies in fee income growth and branch/digital efficiencies reported in the latest quarter.
Price targets and trading considerations for FEDERALBNK.NS stock
Given the earnings-led move, short-term traders should watch INR 278.40 as intraday resistance and INR 247.45 as immediate support. A conservative 12-month price target range based on blended analyst-style multiples and Meyka forecasts is INR 245.00–INR 295.00, with a central target of INR 262.55 (yearly model). For longer-term investors, Meyka’s 3-year projection of INR 326.91 suggests upside if margins sustain and credit metrics improve.
Final Thoughts
Earnings on Jan 16 2026 triggered a sharp re-rating in FEDERALBNK.NS stock, lifting the price to INR 270.25 on heavy volume of 66,835,622 shares. Fundamentals support the move: P/E 15.45, EPS 15.98, and book value per share INR 144.15. Meyka AI assigns a B+ (74.18) — BUY grade and the model sees a near-term fair value around INR 262.55 but longer-term upside to INR 326.91 over three years. Traders should balance the strong post-earnings momentum against technical overbought signals and interest-coverage sensitivity. We recommend monitoring quarterly margin trends, credit costs and deposit mix before increasing position size. For quick reference, read the latest market coverage on Investing India and our internal summary on the Meyka platform at Meyka FEDERALBNK.NS page. Forecasts are model-based projections and not guarantees.
FAQs
Why did FEDERALBNK.NS stock jump on Jan 16 2026?
The stock rose after Federal Bank’s earnings announcement on Jan 16 2026. Markets priced in stronger margins, steady loan growth and improved fee income. High trading volume of 66,835,622 shares confirmed broad participation.
What are the key valuation metrics for FEDERALBNK.NS stock?
Key metrics include a P/E of 15.45, PB of 1.71 and ROE of 11.61%. EPS is 15.98 and book value per share is INR 144.15, placing valuation below larger private-sector banks but in line with regional peers.
What is Meyka AI’s grade and forecast for FEDERALBNK.NS stock?
Meyka AI rates FEDERALBNK.NS 74.18 (B+, BUY). The model projects yearly fair value INR 262.55 and three-year INR 326.91. These are model-based projections and not guarantees.
What short-term levels should traders watch for FEDERALBNK.NS stock?
Watch intraday resistance at INR 278.40 and immediate support at INR 247.45. The 50-day average is INR 255.14 and high-volume action suggests momentum, but oscillators recommend caution for short-term pullbacks.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
