If you're considering investing in Five Star Business Finance Ltd, it's essential to understand their share price and investment overview.
Five Star Business Finance Ltd has a strong presence in the non-banking financial company (NBFC) space, with a focus on microfinance and small business lending.
Their share price has shown significant growth over the years, making it an attractive option for investors.
As of the latest update, Five Star Business Finance Ltd's share price is ₹1,454.05 per unit.
Investment Considerations
As you consider investing in Five Star Business Finance, it's essential to weigh the pros and cons. The stock has shown strong momentum, with its price above short, medium, and long-term moving averages.
The company has a medium financial performance, with average price momentum and valuation. This suggests that the stock is not extremely overvalued or undervalued.
Strengths of the stock include strong momentum, which indicates a potential for continued growth. However, there are also some weaknesses to consider, such as promoters decreasing their shareholding.
Here are some key financial metrics to keep in mind:
The stock's all-time high is 943.75, while its all-time low is 448.20. This indicates a significant range of potential returns.
Overall, it's crucial to carefully evaluate the company's financial performance and market trends before making an investment decision.
Financial Analysis
Five-Star Business Finance Ltd has seen a remarkable growth in its financials over the years, with a CAGR of 59.8% in net sales from FY18 to FY22.
The company's net sales have increased from ₹192.3 crore in FY18 to ₹1254.1 crore in FY22, a growth of 19.5% year-over-year.
Its profitability has also improved significantly, with a net profit of ₹453.5 crore in FY22, a growth of 26.3% year-over-year.
Here's a breakdown of the company's financials over the years:
Fundamental Analysis
Fundamental analysis is a crucial step in understanding a company's financial health and potential for growth. It involves comparing the company's returns with its benchmark index and competitors to gain insights into its relative performance over time.
To conduct a fundamental analysis, we need to select relevant indicators. For Five-Star Business Finance Ltd, let's consider the following indicators: profitability score, solvency score, and market capitalization.
The company's profitability score is 55/100, indicating that it is moderately profitable. This score can be compared to its competitors to determine how it stands in the industry.
Five-Star Business Finance Ltd's solvency score is 61/100, indicating that it is relatively solvent. This score can be used to assess the company's ability to meet its long-term obligations.
The company's market capitalization is high in its industry, indicating a strong market presence.
Here are some key financial metrics for Five-Star Business Finance Ltd:
These metrics indicate that the company has been experiencing significant growth in its net sales and total income over the past few years, with a net profit increase of 26.3% in FY22.
The company's earnings waterfall also provides valuable insights into its revenue and expenses. In FY22, the company generated revenue of 21.8B INR, with operating expenses of -5.6B INR, resulting in an operating income of 16.3B INR.
Seasonality Analysis
Seasonality Analysis is a crucial aspect of financial analysis that helps investors understand how a company's performance varies throughout the year.
January is a month where Five-Star Business Finance often struggles, with negative returns in 2 out of 3 years.
The worst January performance was in 2023, with a negative change of -2.31%.
The best January performance was in 2024, with a positive change of 3.66%.
This highlights the importance of considering seasonality when making investment decisions.
The average change in January is 0.68%, indicating a relatively stable month for Five-Star Business Finance.
Valuation Methods
The valuation of Five Star Business Finance's share price is a crucial aspect to consider. Market cap is high in the industry, which can be a significant factor in determining the company's value.
One important method to evaluate the company's valuation is to look at its market capitalization. Market cap is indeed high in the industry, making it a notable aspect to consider.
To get a better understanding of Five Star Business Finance's valuation, let's take a closer look at the market cap figure.
Company Information
The company behind Five Star Business Finance has a market capitalization of 13809.7 crore rupees.
Their shares are priced between 450 to 474 rupees each, which is a relatively stable range.
The face value of each share is a standard 1 rupee, a common denomination in the Indian stock market.
Business Finance Ltd
Five-Star Business Finance Ltd has a promising future, with a 1-year price target of 941.91 INR, a low forecast of 810.02 INR, and a high forecast of 1,065.75 INR.
The company's financial data shows a significant growth in net sales, from 192.3 cr. in FY18 to 1,254.1 cr. in FY22, with a CAGR of 59.8%.
Here are the company's financial highlights over the past five years:
The company's net profit has grown from 55.8 cr. in FY18 to 453.5 cr. in FY22, with a CAGR of 68.8%.
Basic Info
The company's market value is a significant 13,809.7 crores, which can give you an idea of its size and scope.
Its face value is a simple 1 per share, making it easy to understand and work with.
The price range for a share is quite broad, fluctuating between 450 to 474 rupees.
Trading and IPO
As a Five Star Business Finance investor, it's essential to understand the basics of trading and IPOs. Trading involves buying and selling shares on a stock exchange, with Five Star Business Finance shares being no exception. The company's shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The IPO process allows companies to raise capital by issuing new shares to the public for the first time. Five Star Business Finance's IPO was a significant milestone, raising ₹1,760 crore. The IPO was oversubscribed, indicating strong investor interest in the company's growth prospects.
In trading, the share price of Five Star Business Finance can fluctuate based on market forces, including supply and demand. The company's financial performance, as reflected in its quarterly results, can also impact the share price.
IPO Review
In the world of stock market, institutional investors play a significant role. FII shareholding in Five-Star Business Finance Ltd has increased by 55.5% since the past 3 Months.
This significant increase is a positive sign for the company, indicating growing interest from institutional investors. It's essential to keep an eye on such trends to make informed investment decisions.
FII shareholding has also seen a substantial increase of 185.13% since the past 1 Year, which is a remarkable growth. This trend highlights the potential of the company to attract and retain investors.
Here's a summary of the changes in shareholding:
- FII shareholding has increased by 55.5% in the past 3 Months
- FII shareholding has increased by 185.13% in the past 1 Year
- MF shareholding has increased by 18.7% in the past 3 Months
These changes in shareholding can provide valuable insights for investors looking to make informed decisions about their investments.
Day Trading Information
Day trading involves buying and selling a security within a single trading day, closing out any open positions before the market closes.
This strategy requires a significant amount of time and effort, as traders need to constantly monitor the market and make quick decisions.
Day traders often focus on high-frequency trading, which involves making multiple trades in a short period of time, typically using technical analysis to identify trends.
Technical analysis can be a valuable tool for day traders, as it allows them to identify patterns and trends in the market.
Day traders typically use leverage to amplify their gains, but this also increases their risk exposure.
Leverage can be a double-edged sword, as it can either magnify gains or losses.
In the context of IPOs, day traders may be attracted to newly listed stocks, which can be highly volatile and potentially lucrative.
Sources
- https://www.moneycontrol.com/india/stockpricequote/finance-nbfc/five-starbusinessfinance/FBF
- https://www.alphaspread.com/security/nse/fivestar/summary
- https://trendlyne.com/research-reports/stock/1114733/FIVESTAR/five-star-business-finance-ltd/
- https://www.sharescart.com/ipo/companies/five-star-business-finance-limited/
- https://simplehai.axisdirect.in/share-stock-prices/nse/Five-Star-Business-Finance-Ltd-6468
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