Research Reports'Buy' Five Star Business Finance, Maintains Motilal Oswal, Sees 28% Upside — Here's Why
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'Buy' Five Star Business Finance, Maintains Motilal Oswal, Sees 28% Upside — Here's Why
Motilal Oswal believes that valuations will re-rate when Five Star emerges out of the current macro weakness without any significant impact on its asset quality.
Five Star Business Finance stock has undergone a decent correction following the company’s downward revision in its AUM growth guidance, coupled with customer overleveraging, which raised concerns about any potential deterioration in asset quality.
(Photo source: Usha Kunji/ NDTV Profit)
With a widespread branch-led distribution network and expansion in new regions, Five Star is set to capture a larger share of the untapped MSME lending space while maintaining its competitive advantage in underwriting and collections.