FIVESTAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | FIVESTAR | Market Cap | 14,155 Cr. | Current Price | 480 ₹ | High / Low | 828 ₹ |
| Stock P/E | 12.9 | Book Value | 250 ₹ | Dividend Yield | 0.42 % | ROCE | 14.8 % |
| ROE | 16.1 % | Face Value | 1.00 ₹ | DMA 50 | 442 ₹ | DMA 200 | 523 ₹ |
| Chg in FII Hold | -4.47 % | Chg in DII Hold | 2.84 % | PAT Qtr | 269 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 59.4 | MACD | 27.4 | Volume | 10,43,990 | Avg Vol 1Wk | 21,89,828 |
| Low price | 338 ₹ | High price | 828 ₹ | PEG Ratio | 0.58 | Debt to equity | 1.11 |
| 52w Index | 28.9 % | Qtr Profit Var | -3.53 % | EPS | 37.2 ₹ | Industry PE | 18.2 |
Financials & Valuation:
FIVESTAR shows decent fundamentals. ROE (16.1%) and ROCE (14.8%) reflect healthy efficiency. EPS of 37.2 ₹ supports profitability, though quarterly PAT declined to 269 Cr. from 277 Cr., showing slight earnings pressure. Debt-to-equity at 1.11 indicates reliance on leverage but remains manageable.
Valuation Indicators:
P/E ratio of 12.9 is lower than the industry average (18.2), suggesting undervaluation. Book Value of 250 ₹ compared to current price of 480 ₹ shows moderate premium pricing. PEG ratio of 0.58 indicates attractive valuation relative to growth. Dividend yield of 0.42% provides modest income support.
Business Model & Health:
FIVESTAR, an NBFC, benefits from strong demand in retail and SME credit. Profitability metrics are solid, supported by EPS and undervaluation. Institutional sentiment is mixed, with FII holdings declining (-4.47%) but DII holdings increasing (+2.84%), showing strong domestic support.
Entry Zone & Holding Guidance:
Technically, support lies around 450–470 ₹, with resistance near 500–520 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals and undervaluation, though leverage and foreign investor sentiment should be monitored.
Positive
- Strong ROE (16.1%) and ROCE (14.8%).
- EPS of 37.2 ₹ supports profitability.
- P/E ratio (12.9) below industry average (18.2), indicating undervaluation.
- DII holdings increased (+2.84%), showing domestic confidence.
Limitation
- Debt-to-equity (1.11) indicates reliance on leverage.
- Quarterly PAT declined (269 Cr. vs 277 Cr.).
- FII holdings decreased (-4.47%).
- Dividend yield remains modest at 0.42%.
Company Negative News
- Decline in FII holdings.
- Slight drop in quarterly PAT.
- Stock corrected sharply from 52-week high of 828 ₹.
Company Positive News
- DII holdings increased significantly.
- EPS remains strong at 37.2 ₹.
- Technical indicators (MACD 27.4, RSI 59.4) show bullish momentum.
Industry
- NBFC sector benefits from rising credit demand in retail and SME segments.
- Industry PE (18.2) is higher than FIVESTAR’s, suggesting undervaluation.
- Long-term growth supported by financial inclusion and credit expansion.
Conclusion
FIVESTAR is fundamentally strong with solid profitability, undervaluation relative to peers, and strong domestic support. Entry near 450–470 ₹ offers a favorable setup. Long-term investors can hold with confidence, while monitoring leverage and foreign investor sentiment.
Would you like me to extend this into a sector overlay comparison against peers like Bajaj Finance, Muthoot Finance, and Manappuram Finance to highlight FIVESTAR’s relative positioning in valuation and efficiency?