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FIVESTAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | FIVESTAR | Market Cap | 13,400 Cr. | Current Price | 454 ₹ | High / Low | 850 ₹ |
| Stock P/E | 12.1 | Book Value | 231 ₹ | Dividend Yield | 0.44 % | ROCE | 16.3 % |
| ROE | 18.6 % | Face Value | 1.00 ₹ | DMA 50 | 535 ₹ | DMA 200 | 604 ₹ |
| Chg in FII Hold | -2.85 % | Chg in DII Hold | 2.58 % | PAT Qtr | 277 Cr. | PAT Prev Qtr | 286 Cr. |
| RSI | 25.5 | MACD | -23.0 | Volume | 6,17,319 | Avg Vol 1Wk | 40,31,907 |
| Low price | 435 ₹ | High price | 850 ₹ | PEG Ratio | 0.36 | Debt to equity | 1.23 |
| 52w Index | 4.62 % | Qtr Profit Var | 1.16 % | EPS | 37.6 ₹ | Industry PE | 18.9 |
📊 Core Financials
- Revenue growth: PAT at 277 Cr vs 286 Cr in previous quarter, showing slight decline but overall stable performance.
- Profit margins: EPS at 37.6 ₹, reflecting strong earnings relative to price.
- Debt ratios: Debt-to-equity at 1.23, moderately high, indicating reliance on leverage.
- Cash flows: Supported by profitability, though debt levels may constrain flexibility.
- Return metrics: ROCE 16.3 %, ROE 18.6 % — healthy efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 12.1, below industry average (18.9), suggests undervaluation.
- P/B ratio: Current Price / Book Value ≈ 2.0, reasonable relative to assets.
- PEG ratio: 0.36, attractive, indicates undervaluation relative to growth.
- Intrinsic value: Appears undervalued compared to peers, supported by strong ROE and EPS.
🏢 Business Model & Competitive Advantage
- Operates in financial services, focusing on secured lending to small businesses and individuals.
- Competitive advantage through niche lending model and strong regional presence.
- Debt reliance is a concern, but profitability and returns remain solid.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 440–470 ₹ levels, close to 52-week low support.
- Long-term holding: Favorable due to undervaluation and strong ROE/ROCE, though debt levels require monitoring.
Positive
- Strong ROE (18.6 %) and ROCE (16.3 %).
- P/E ratio (12.1) below industry average, indicating undervaluation.
- EPS at 37.6 ₹ reflects strong earnings.
- DII holdings increased (+2.58 %).
Limitation
- Debt-to-equity ratio at 1.23 is relatively high.
- Quarterly PAT declined slightly (277 Cr vs 286 Cr).
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Negative News
- FII holdings decreased (-2.85 %).
- Technical indicators weak: RSI at 25.5 (oversold), MACD negative.
- Stock corrected sharply from 52-week high of 850 ₹.
Company Positive News
- Strong EPS and return ratios support fundamentals.
- DII holdings increased, showing domestic institutional confidence.
- PEG ratio at 0.36 highlights undervaluation relative to growth.
Industry
- Financial services sector supported by credit demand and economic growth.
- Industry PE at 18.9, higher than FIVESTAR’s P/E, suggesting undervaluation.
Conclusion
- FIVESTAR demonstrates solid fundamentals with strong EPS, ROE, and ROCE.
- Valuation is attractive compared to industry peers, though debt levels and weak momentum are concerns.
- Entry advisable near lower support levels; long-term holding recommended for investors seeking undervalued financial sector exposure.
Would you like me to also prepare a peer comparison HTML snapshot against NBFC players like Manappuram Finance, Muthoot Finance, and Shriram Finance to highlight FIVESTAR’s relative valuation and strengths?