Five-Star Business Finance Ltd - Stock Valuation and Financial Performance

BSE: 543663 | NSE: FIVESTAR | Finance - NBFC | Small Cap

Five Star Business Share Price

716.60 -16.80 -2.29%
as on 28-Mar'24 14:42

DeciZen - make an informed investing decision on Five Star Business

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Five-Star Business Finance stock performance -

mw4me loader
P/E Ratio (SA):
27.90
Market Cap:
21,448.2 Cr.
52-wk low:
509.9
52-wk high:
875.4

Is Five-Star Business Finance Ltd an attractive stock to invest in?

1. Is Five-Star Business Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Five-Star Business Finance Ltd is a good quality company.

2. Is Five-Star Business Finance Ltd undervalued or overvalued?

The key valuation ratios of Five-Star Business Finance Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Five-Star Business Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Five-Star Business Finance Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Five Star Business:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Five-Star Business Finance Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)25.23346.383.11964097871,0501,2541,5212,002
YoY Gr. Rt. %-31%40.3%79.5%136.3%108.3%92.4%33.4%19.5%21.3%-
Adj EPS (₹ ) 8.19.712.513.628.365.6102.414015.620.726.3
YoY Gr. Rt. %-20.4%28.9%8.3%108.4%131.6%56.2%36.7%-88.9%33%-
BVPS (₹ )5369.985.2157.4307.2569.1758.5897126.2146.8169.4
YoY Gr. Rt. %-31.7%22%84.7%95.2%85.2%33.3%18.3%-85.9%16.4%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)7.16.86.64.15.99.17.97.17.58.10

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income57.7%50.6%24.6%21.3%
Adj EPS11%-6.1%-41.3%33%
BVPS12%-13.7%-42.2%16.4%
Share Price - - - 36.4%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)28.930.12923.327.638.333.334.236.239.738.4
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)2016.716.512.313.316.115.916.915.215.215.5

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 16.60%

Total Income has increased 24.57 CAGR in last 3 years

Total income growth is good in last 4 quarters

Net Profit has declined -41.30 CAGR in last 3 years

Latest Financials - Five-Star Business Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 26.3 5.4
TTM Sales (₹ Cr.) 2,002 409
BVPS (₹.) 169.4 0
Reserves (₹ Cr.) 4,924 1,336
P/BV 4.33 0.00
PE 27.90 136.91
From the Market
52 Week Low / High (₹) 509.90 / 875.35
All Time Low / High (₹) 448.20 / 875.35
Market Cap (₹ Cr.) 21,448
Equity (₹ Cr.) 29.2
Face Value (₹) 1
Industry PE 30.6

Management X-Ray of Five Star Business:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Five Star Business

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income253447861974097871,0511,2561,529
Interest Income253346831964097871,0501,2541,521
Other Income 0113101228
Expenditure 14182755121190438575652724
Interest Expense 91014245576218327302268
Operating Expenses 47122856105170206297426
Provisions 111410950425330
Exceptional Items 0000000000
Profit Before Tax 1115203176218349476604805
Taxes 45711216287117151201
Profit After Tax 710131954157262359454603
Adjusted EPS (₹)8.19.712.513.628.365.6102.4140.015.620.7
Dividend Payout Ratio (%)22%17%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital4871912245921,3651,9452,3183,7104,340
Share Capital 9101114192426262929
Reserves 3961802105731,3411,9192,2933,6814,310
Minority Interest0000000000
Long Term Borrowings24358033509422,3423,3892,4324,115
Current Liabilities 486665148535283850154195
Trade Payables011323791320
Short term borrowings111614475289028483
Other Liabilities-12-16-14-50-530-12-7-11-97-103
Total Liabilities 1201732367071,1272,3354,3255,7576,2968,650

Assets

Non Current Asset 6590164408292,1093,8644,3885,2816,982
Loan Asset 0000000000
Other Non Current Asset 6590164408292,1093,8644,3885,2816,982
Current Asset 5583722991,0982264611,3691,0151,667
Current Investment1040000010840
Other Current Asset5582682991,0982264611,3699071,627
Total Assets 1201732367071,1272,3354,3255,7576,2968,650

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -17-20-51-261-457-951-1,523-157-277-1,123
Cash Flow From Investing Activity 20-2011114-132102-384162
Cash Flow From Financing Activity 2337464373931,0251,7251,03371,688
Net Cash Flow 817-25177-538870977-654727
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)810131428661021401621
DPS (₹)2200000000
BVPS (₹)537085157307569758897126147

Performance Ratios

ROA (%)7.16.86.64.15.99.17.97.17.58.1
ROE (%)20.016.716.512.313.316.115.916.915.215.2
ROCE (%)21.218.918.312.214.517.117.116.015.114.4

Valuation Parameters

Price/Book(x)0.00.00.00.00.00.00.00.00.03.7

Five-Star Business Finance Ltd Stock News

Five-Star Business Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Five Star Business on 28-Mar-2024 14:42 is ₹716.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 14:42 the market cap of Five Star Business stood at ₹21,448.2.
The latest P/E ratio of Five Star Business as of 28-Mar-2024 14:42 is 27.90.
The latest P/B ratio of Five Star Business as of 28-Mar-2024 14:42 is 4.33.
The 52-week high of Five Star Business is ₹875.4 and the 52-week low is ₹509.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Five Star Business is ₹2,002 ( Cr.) .

About Five-Star Business Finance Ltd

The Company was incorporated as Five-Star Business Credits Private Limited at Chennai, Tamil Nadu as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated May 7, 1984, issued by the Registrar of Companies, Tamil Nadu at Chennai (RoC). The Company was converted from a private limited company to a public limited company pursuant to board resolution dated September 7, 1988 and special resolution passed by the Shareholders at the EGM dated October 3, 1988. Consequently, the name of the Company was changed from ‘Five-Star Business Credits Private Limited’ to ‘Five-Star Business Credits Limited’ and the certificate of incorporation was amended on October 3, 1988. The name of the Company was subsequently changed to ‘Five-Star Business Finance Limited’ pursuant to board resolution dated March 25, 2015 and special resolution passed by the Shareholders at the EGM held on April 12, 2016, and a fresh certificate of incorporation consequent upon change of name was issued by the RoC on May 13, 2016.

Five Star Business Finance is an NBFC-ND-SI (Non-Banking Finance Company) providing secured business loans to micro-entrepreneurs and self-employed individuals. It is headquartered in Chennai, Tamil Nadu with a strong presence in south India and all of its loans are secured by its borrowers’ property, predominantly being SORP. The company has developed a business model that is predicated on arriving at an appropriate risk framework, with the optimal instalment to income ratio to ensure that its customers have the necessary means to repay the loan after meeting their regular obligations and other event-based capital requirements. The company’s growth is primarily volume led through increasing its customer base while keeping the ATS stable, and it expects this to continue.

The company started operations in Chennai, Tamil Nadu and have increased the scale of its operations through growth in number of branches by adopting a calibrated strategy of contiguous expansion across geographies where there is substantial demand for its offering. Such contiguous expansion is underpinned by utilizing neighboring branches to evaluate local credit environments combined with its focus on hiring local staff with an understanding of the catchment area, strong local personal and professional networks and the market.

Business area of the company

The company is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI) providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions.

Key events

  • 1984: Incorporation of the Company.
  • 1988: Conversion from a private limited company to a public limited company.
  • 2006: Rearranged portfolio for advances by moving focus to financing in immoveable properties.
  • 2010: Loan book crossed Rs 250.00 million.
  • 2013: Opened 25th branch.
  • 2014: Expanded geographical presence outside Tamil Nadu to Karnataka and Andhra Pradesh.
  • 2014: Investment of Rs 170.00 million by Matrix Holdings.
  • 2014: Loan book crossed Rs 1,000 million.
  • 2015: Investment of Rs 156.00 million by Matrix Holdings.
  • 2017: Crossed 100 branches.
  • 2017: Expanded geographical presence to Telangana.
  • 2020: Crossed 200 branches.
  • 2021: Loan book crossed Rs 40,000 million.
  • 2022: Loan book crossed Rs 50,000 million.
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