FIVESTAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | FIVESTAR | Market Cap | 13,177 Cr. | Current Price | 446 ₹ | High / Low | 828 ₹ |
| Stock P/E | 12.1 | Book Value | 250 ₹ | Dividend Yield | 0.46 % | ROCE | 14.8 % |
| ROE | 16.1 % | Face Value | 1.00 ₹ | DMA 50 | 451 ₹ | DMA 200 | 515 ₹ |
| Chg in FII Hold | -4.47 % | Chg in DII Hold | 2.84 % | PAT Qtr | 269 Cr. | PAT Prev Qtr | 277 Cr. |
| RSI | 43.9 | MACD | 1.79 | Volume | 10,36,720 | Avg Vol 1Wk | 5,97,002 |
| Low price | 338 ₹ | High price | 828 ₹ | PEG Ratio | 0.55 | Debt to equity | 1.11 |
| 52w Index | 22.1 % | Qtr Profit Var | -3.53 % | EPS | 37.2 ₹ | Industry PE | 18.3 |
📊 Financials: FIVESTAR shows moderate fundamentals. Quarterly PAT stood at 269 Cr, slightly lower than the previous 277 Cr, reflecting margin pressure. ROCE at 14.8% and ROE at 16.1% are decent, indicating fair efficiency. EPS is 37.2 ₹, supporting profitability. Debt-to-equity at 1.11 is relatively high, reflecting reliance on borrowings, typical for NBFCs.
💰 Valuation: The stock trades at a P/E of 12.1, below the industry average of 18.3, suggesting undervaluation. Book value is 250 ₹, with current price at 446 ₹, implying a P/B ratio of ~1.8. PEG ratio of 0.55 indicates valuation is attractive relative to growth. Intrinsic value appears higher than current levels, suggesting potential upside.
🏦 Business Model & Health: FIVESTAR operates as a non-banking financial company (NBFC), focusing on small business loans and retail lending. Competitive advantage lies in niche lending, regional presence, and strong customer relationships. Overall health is stable, supported by profitability and institutional support, though debt reliance and earnings volatility remain concerns.
📈 Entry Zone: RSI at 43.9 indicates near oversold levels. Support is near 400 ₹, resistance at 828 ₹. Entry around 420–450 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given undervaluation, though investors should monitor debt levels and earnings consistency.
Positive
- 🏦 [Undervalued](ca://s?q=FIVESTAR_valuation): P/E of 12.1 is below industry average.
- 📈 [Institutional Support](ca://s?q=FIVESTAR_institutional_support): DII holdings increased by 2.84%.
- 💹 [Strong EPS](ca://s?q=FIVESTAR_EPS): EPS of 37.2 ₹ reflects solid earnings base.
Limitation
- 📉 [Profit Decline](ca://s?q=FIVESTAR_profit_decline): PAT fell from 277 Cr to 269 Cr.
- ⚠️ [Debt Reliance](ca://s?q=FIVESTAR_debt_levels): Debt-to-equity ratio of 1.11 is relatively high.
- 📊 [FII Outflow](ca://s?q=FIVESTAR_FII_outflow): Foreign investors reduced holdings by -4.47%.
Company Negative News
- 📉 [Quarterly Decline](ca://s?q=FIVESTAR_quarterly_decline): PAT dropped compared to previous quarter.
- 📊 [FII Reduction](ca://s?q=FIVESTAR_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [DII Support](ca://s?q=FIVESTAR_DII_support): Domestic institutions increased holdings by 2.84%.
- 💹 [Valuation Advantage](ca://s?q=FIVESTAR_valuation_advantage): Stock trades below industry average P/E.
Industry
- 🏦 [NBFC Growth](ca://s?q=Indian_NBFC_growth): Sector expanding with demand for retail and small business loans.
- 📊 [Industry PE](ca://s?q=NBFC_industry_PE): Sector average P/E is 18.3, higher than FIVESTAR’s valuation.
Conclusion
✅ FIVESTAR demonstrates stable fundamentals, profitability, and undervaluation, making it a fundamentally sound investment. While debt reliance and profit decline are concerns, institutional support and attractive valuation provide confidence. Entry around 420–450 ₹ is favorable, and long-term holding is recommended given the company’s niche lending model and sector growth outlook.