BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Breaking the seasonality, Five Star Business Finance Ltd. has reported strong Q1 FY24 operating performance, especially, on growth and asset quality fronts– assets under management grew robust 10% QoQ even in a seasonally weak quarter and 30 plus days past due fell to a multi-year low of 9.7%.
Spread improved 20 basis points QoQ driven equally by an increase in asset yields and a decline in the cost of funds (down 10 bps QoQ).
Credit rating upgrade in Q1 FY24 and incremental borrowing cost at 9.2% (blended cost of fund at 9.8%) improve visibility on better trajectory in spread to continue in coming quarters.
Given very strong growth momentum in Q1 FY24, management has raised its full year FY24 growth guidance to 35% versus 30% earlier.
Maintain 'Buy' with a revised target price of Rs 860 (Rs 765 earlier), valuing the stock at 4.5 times on Sep-24 book value per share versus four times earlier.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
