Federal Bank's intrinsic value using Intellectual Capital analysis

Federal Bank

BSE : 500469

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NSE : FEDERALBNK

Industry : Bank Pvt sector

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ISIN : INE171A01029

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FreeFloat : 100.00%

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FnO : Yes

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LotSize : 10000

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Intellectual Capital (IC)	12,185.75
Net Worth (NW)	17,084.00
Intrinsic Worth (IW)	29,269.76
Market Cap (MC)	17,387.63
Economic Value Added	883.53

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	41.63%
IC Gross Margin (EBITDA/IC)	88.92%
IC Net Margin (NPT/IC)	14.07%
Knowledge Turnover (Sales/IC)	1.23
Market to Intrinsic Value (MC/IW)	0.59

As Of	Intrinsic Value	Market Price
30 Jun 2021	Rs. 146.62	Rs. 87.10
20 Sep 2021	----	Rs. 79.70
20 Sep 2021	----	-3.60 -4.52%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Sell	10 DMA : Rs. 82.65	Sell	Strong Sell
KB > 50% : No		50 DMA : Rs. 84.37
0 < M2IV < 1 : Yes		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Sep-18
C
2813.01
3135.97
2187.18
2187.18
426.01
279.31
280.61

Dec-18
C
3002.72
3348.78
2423.54
2423.54
527.26
340.89
339.81

Mar-19
C
3106.65
3501.77
2544.54
2544.54
590.85
391.07
422.92

Jun-19
C
3295.21
3666.18
2682.09
2682.09
585.02
373.71
374.20

Sep-19
C
3336.75
3748.44
2631.96
2631.96
477.74
424.40
425.34

Dec-19
C
3413.95
3834.71
2803.45
2803.45
597.81
451.72
451.62

Mar-20
C
3544.48
4222.87
2620.77
2620.77
399.40
302.95
329.04

Jun-20
C
3572.11
4055.42
2750.12
2750.12
553.57
411.58
409.50

Sep-20
C
3621.88
4131.32
2578.79
2578.79
419.38
315.70
315.70

Dec-20
C
3604.23
4088.77
2638.65
2638.65
562.86
419.67
418.14

Mar-21
C
3515.86
3996.43
2675.96
2675.96
672.75
500.25
521.24

Jun-21
C
3524.98
4147.77
2487.22
2487.22
487.06
355.56
356.76

* C - Consolidated, S - Standalone