FIVESTAR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Overview

Profitability

ROE: 18.6% and ROCE: 16.3% — strong return metrics, indicating efficient capital deployment.

EPS: ₹37.0 — solid earnings base for a mid-cap NBFC.

PAT Qtr: ₹266 Cr vs ₹279 Cr — slight dip, but overall stable performance.

Balance Sheet & Leverage

Debt-to-Equity: 1.26 — typical for NBFCs, manageable within sector norms.

Book Value: ₹214 — implies a P/B ratio of ~2.5, reasonable for a high-growth lender.

Dividend Yield: 0.37% — modest, not a primary attraction.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 14.6 Attractive vs industry average (24.0)

PEG Ratio 0.44 Indicates undervaluation relative to growth

Intrinsic Value ~₹580–₹620 CMP is slightly undervalued

Valuation is compelling, especially with a low PEG and strong ROE.

🏢 Business Model & Competitive Edge

Sector: Non-Banking Financial Company (NBFC) — focused on secured lending to underserved segments.

Strengths

Specializes in small business loans and mortgage-backed lending.

Strong presence in Tier-2/3 cities with deep local networks.

High asset quality and prudent underwriting practices.

Institutional sentiment mixed — FII holding down (-0.62%) but DII up (+0.39%).

Challenges

Rising interest rates could pressure margins.

High debt-to-equity ratio needs monitoring if credit cycle turns.

📉 Technicals & Entry Zone

Current Price: ₹538

DMA 50: ₹599 | DMA 200: ₹678 — trading below both, bearish trend

RSI: 36.2 — approaching oversold zone

MACD: Negative — momentum weak

📌 Suggested Entry Zone: ₹520–₹540

Current levels offer a good entry point for long-term investors, especially if technicals stabilize.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, niche focus, and disciplined lending make it a durable long-term play.

Accumulate on dips: Ideal for investors seeking exposure to high-growth lending in underserved markets.

You can explore FIVESTAR’s chart and earnings forecast on TradingView or review its financials and analyst ratings on Trendlyne

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