Five-Star Business Finance - ICICI Securities Initiates Coverage With A 'Buy' Rating

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.We initiate coverage on Five Star Business Finance Ltd. with a 'Buy' rating and target price of Rs 765, valuing the stock at four times September-24E book value per share. Stock is currently trading at 3.1 times FY25 BVPS, at par with Aptus Value Housing Finance India Ltd. and Home First Finance Company Ltd., FY25E PBV multiple at 3.1 times. Considering better return and growth outlook, we believe Five Star would command premium over peers. Key risks: Deceleration in AUM growth, and stress unfolding higher than anticipated..Investment Rationale: Since FY15, Five-Star Business Finance Ltd. has added an average of 40 branches each year, taking its total branch count to 373 as of March 2023 – highest among select peers. We believe distribution infrastructure is a prerequisite to scale a business model involving high human touch.Five-Star’s focused target market is semi-urban and rural areas and self employed customers with household-level net cashflows between Rs 25,000 to Rs 40,000 per month.While Five-Star’s target customers appear to be vulnerable to even the smallest external event, its careful customer selection, deep understanding of customer behaviour (gained through more than two decades of experience in catering to this customer segment) and preference for high customer equity (in collateral) have enabled it to maintain pristine asset quality across credit cycles..Click on the attachment to read the full report:.Coforge - FY24 Guidance Reiterated Despite Adverse H2 Outlook: Motilal Oswal.DISCLAIMERThis 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.

Five-Star Business Finance - ICICI Securities Initiates Coverage With A 'Buy' Rating

Likely to emerge as a preferred player to gain exposure to India’s financial inclusion story.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP