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BSE: 543663 | NSE: FIVESTAR | Finance - NBFC | Small Cap
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 Somewhat overvalued zone.
3. Is Five-Star Business Finance Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Five-Star Business Finance Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
|Operating Income (₹ Cr.)||18.6||25.2||33||46.3||83.1||196||409||787||1,050||1,254||1,521|
|YoY Gr. Rt. %||-||35.4%||31%||40.3%||79.5%||136.3%||108.3%||92.4%||33.4%||19.5%||-|
|Adj EPS (₹ )||8.6||8.1||9.7||12.5||13.6||28.3||65.6||102.4||140||15.6||20.7|
|YoY Gr. Rt. %||-||-6.3%||20.4%||28.9%||8.3%||108.4%||131.6%||56.2%||36.7%||-88.9%||-|
|BVPS (₹ )||35.7||53||69.9||85.2||157.4||307.2||569.1||758.5||897||126.2||148.9|
|YoY Gr. Rt. %||-||48.7%||31.7%||22%||84.7%||95.2%||85.2%||33.3%||18.3%||-85.9%||-|
|To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ|
|Net Profit/Total Funds (%)||7.1||7.1||6.8||6.6||4.1||5.9||9.1||7.9||7.1||7.5||0|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Net Interest Income||59.7%||72.1%||45.3%||19.5%|
Key Financial Ratios
|RATIOS \ YEARS||Mar'13||Mar'14||Mar'15||Mar'16||Mar'17||Mar'18||Mar'19||Mar'20||Mar'21||Mar'22||TTM|
|Asset Quality Ratio||To view Asset Quality Ratio Colour Rating Guide click here ⓘ|
|Net NPA to Net Advances (%)||0||0||0||0||0||0||0||0||0||0||-|
|Capitalization Ratio||To view Capitalization Ratio Colour Rating Guide click here ⓘ|
|Capital Adequacy Ratio (%)||0||0||0||0||0||0||0||0||0||0||-|
|Net Profit Margin (%)||32.5||28.9||30.1||29||23.3||27.6||38.3||33.3||34.2||36.2||39.7|
|Performance Ratios||To view Performance Ratios Colour Rating Guide click here ⓘ|
|Return on Equity (%)||24.2||20||16.7||16.5||12.3||13.3||16.1||15.9||16.9||15.2||13.9|
Total Income has increased 45.29 CAGR in last 3 years
Return on Equity has declined versus last 3 years average to 15.10%
Net Profit has declined -38.07 CAGR in last 3 years
Total income growth is poor in last 4 quarters
|TTM EPS (₹)||20.7||5.4|
|TTM Sales (₹ Cr.)||1,521||409|
|BVPS (₹.) ⓘ||148.9||0|
|Reserves (₹ Cr.) ⓘ||4,310||1,336|
|From the Market|
|52 Week Low / High (₹)||448.20 / 687.25|
|All Time Low / High (₹)||448.20 / 687.25|
|Market Cap (₹ Cr.)||16,975|
|Equity (₹ Cr.)||29.1|
|Face Value (₹)||1|
|Industry PE ⓘ||18.9|
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.