⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FIVESTAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | FIVESTAR | Market Cap | 11,070 Cr. | Current Price | 375 ₹ | High / Low | 850 ₹ |
| Stock P/E | 9.98 | Book Value | 231 ₹ | Dividend Yield | 0.53 % | ROCE | 16.3 % |
| ROE | 18.6 % | Face Value | 1.00 ₹ | DMA 50 | 443 ₹ | DMA 200 | 552 ₹ |
| Chg in FII Hold | -2.85 % | Chg in DII Hold | 2.58 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 286 Cr. |
| RSI | 35.5 | MACD | -25.7 | Volume | 30,07,998 | Avg Vol 1Wk | 20,13,073 |
| Low price | 343 ₹ | High price | 850 ₹ | PEG Ratio | 0.30 | Debt to equity | 1.23 |
| 52w Index | 6.35 % | Qtr Profit Var | 1.16 % | EPS | 37.6 ₹ | Industry PE | 17.2 |
📊 Core Financials
- Revenue growth: PAT slightly declined to 277 Cr. from 286 Cr., showing stable but flat performance
- Profit margins: EPS at 37.6 ₹, ROE 18.6%, ROCE 16.3% — strong efficiency
- Debt ratios: Debt-to-equity at 1.23, indicates moderate leverage
- Cash flows: Positive profitability supports healthy cash generation
- Return metrics: ROE and ROCE above industry averages, showing solid returns
💹 Valuation Indicators
- P/E Ratio: 9.98, well below industry PE of 17.2, suggests undervaluation
- P/B Ratio: ~1.62 (375 ₹ / 231 ₹), reasonable
- PEG Ratio: 0.30, attractive and indicates undervaluation relative to growth
- Intrinsic Value: Current price appears undervalued compared to peers
🏢 Business Model & Competitive Advantage
- Operates in financial services sector, focusing on lending and credit solutions
- Competitive advantage through niche lending and strong regional presence
- Industry demand supported by credit expansion and financial inclusion initiatives
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 360–380 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and undervaluation support sustained growth
✅ Positive
- Strong ROE (18.6%) and ROCE (16.3%) indicate efficient capital use
- P/E ratio (9.98) well below industry average, suggesting undervaluation
- DII holding increased (+2.58%)
⚠️ Limitation
- PAT declined slightly from 286 Cr. to 277 Cr.
- Debt-to-equity ratio at 1.23 indicates moderate leverage
- Stock trading below DMA 50 (443 ₹) and DMA 200 (552 ₹), showing weak momentum
📰 Company Negative News
- FII holding decreased (-2.85%)
- Stock corrected sharply from 52-week high of 850 ₹
- RSI at 35.5 indicates oversold conditions
🌟 Company Positive News
- DII holding increased (+2.58%)
- PEG ratio at 0.30 highlights undervaluation relative to growth
- Dividend yield at 0.53% adds shareholder value
🏭 Industry
- Industry PE at 17.2, FIVESTAR trades at a discount
- Sector benefits from credit expansion, financial inclusion, and rising demand for lending services
🔎 Conclusion
- FIVESTAR shows strong fundamentals with high ROE and ROCE, though leverage is moderate
- Valuation is attractive compared to industry peers, suggesting upside potential
- Recommended for long-term holding, with entry near 360–380 ₹ offering good risk-reward potential