Five-Star Business Finance Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 8:49 pm

Market Cap	23,185 Cr.
Current Price	791
High / Low	944/600
Stock P/E	23.8
Book Value	196
Dividend Yield	0.00 %
ROCE	15.8 %
ROE	17.5 %
Face Value	1.00
PEG Ratio	-0.90

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Five-Star Business Finance Ltd

Competitors of Five-Star Business Finance Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Mufin Green Finance Ltd	1,729 Cr.	106	274/90.4	89.4	16.0	0.00 %	10.6 %	8.27 %	1.00
Mukesh Babu Financial Services Ltd	105 Cr.	150	181/111	19.0	490	0.80 %	3.62 %	2.40 %	10.0
Nalin Lease Finance Ltd	42.3 Cr.	64.4	99.9/37.0	10.6	51.1	0.00 %	17.4 %	13.1 %	10.0
India Cements Capital Ltd	38.1 Cr.	17.5	26.4/13.6	42.8	8.43	0.00 %	3.50 %	8.87 %	10.0
Indergiri Finance Ltd	16.5 Cr.	32.6	71.3/26.8		8.26	0.00 %	7.67 %	14.0 %	10.0
Industry Average	18,779.89 Cr	630.21		38.18	563.11	0.17%	19.97%	10.57%	8.67

All Competitor Stocks of Five-Star Business Finance Ltd

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	308	317	326	338	361	387	436	480	519	567	616	666	702
Expenses	73	86	101	84	104	119	133	137	144	145	161	169	178
Operating Profit	235	232	225	253	256	267	303	344	375	423	455	498	524
OPM %	76%	73%	69%	75%	71%	69%	70%	72%	72%	74%	74%	75%	75%
Other Income	0	1	1	1	1	2	4	3	4	3	3	3	4
Interest	78	72	63	65	61	63	77	96	106	129	138	158	163
Depreciation	3	3	4	4	4	5	5	5	6	7	7	6	7
Profit before tax	155	157	159	186	193	202	224	246	267	290	313	336	358
Tax %	24%	25%	26%	25%	25%	25%	25%	25%	25%	25%	25%	25%	25%
Net Profit	118	118	118	139	144	151	169	184	199	217	236	252	268
EPS in Rs	46.70	4.07	4.05	4.79	4.95	5.18	5.80	6.30	6.84	7.42	8.07	8.60	9.16

Last Updated: November 6, 2024, 6:44 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:28 pm

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	86	196	402	787	1,050	1,254	1,521	2,183	2,369
Expenses	30	64	107	210	237	337	439	582	618
Operating Profit	55	133	294	577	813	917	1,082	1,600	1,751
OPM %	64%	68%	73%	73%	77%	73%	71%	73%	74%
Other Income	0	1	1	1	1	2	8	12	12
Interest	24	55	73	218	327	302	268	472	531
Depreciation	1	3	4	10	11	12	17	25	26
Profit before tax	31	76	218	349	476	604	805	1,116	1,206
Tax %	37%	28%	28%	25%	25%	25%	25%	25%
Net Profit	19	54	156	262	359	454	604	836	904
EPS in Rs	13.58	28.30	65.40	103.80	142.26	15.57	20.71	28.58	30.93
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	184.21%	188.89%	67.95%	37.02%	26.46%	33.04%	38.41%
Change in YoY Net Profit Growth (%)	0.00%	4.68%	-120.94%	-30.93%	-10.56%	6.58%	5.37%

Five-Star Business Finance Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	40%
3 Years:	28%
TTM:	40%

Compounded Profit Growth
10 Years:	%
5 Years:	40%
3 Years:	33%
TTM:	38%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	9%

Return on Equity
10 Years:	%
5 Years:	16%
3 Years:	16%
Last Year:	18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 3:36 pm

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	14	19	24	26	26	29	29	29	29
Reserves	210	573	1,341	1,919	2,293	3,681	4,310	5,167	5,694
Borrowings	452	528	922	2,364	3,425	2,559	4,247	6,316	6,880
Other Liabilities	14	14	31	45	50	74	116	177	217
Total Liabilities	690	1,134	2,317	4,353	5,794	6,343	8,703	11,689	12,820
Fixed Assets	5	0	10	28	25	33	45	64	72
CWIP	2	0	0	0	0	0	0	0	0
Investments	15	15	15	0	0	248	145	108	205
Other Assets	669	1,119	2,293	4,325	5,769	6,062	8,513	11,517	12,542
Total Assets	690	1,134	2,317	4,353	5,794	6,343	8,703	11,689	12,820

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-457	-940	-1,523	-157	-277	-1,123	-2,122
Cash from Investing Activity +	10	14	-132	102	-384	162	210
Cash from Financing Activity +	393	1,010	1,725	1,033	7	1,688	2,106
Net Cash Flow	-53	84	70	977	-654	727	194

Free Cash Flow

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-397.00	-395.00	-628.00	575.00	810.00	915.00	-3.00	-5.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	0	0	0	0	0	0	0	0
Inventory Days
Days Payable
Cash Conversion Cycle	0	0	0	0	0	0	0	0
Working Capital Days	375	7	-18	-14	-11	-12	-14	-15
ROCE %		15%	17%	17%	16%	15%	14%	16%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	34.87%	34.87%	34.39%	31.30%	26.54%	26.51%	26.51%
FIIs	6.54%	6.98%	8.74%	50.22%	54.28%	56.06%	57.45%
DIIs	5.62%	5.05%	4.71%	7.52%	7.82%	6.97%	6.07%
Public	52.96%	53.10%	52.15%	10.97%	11.36%	10.44%	9.96%
No. of Shareholders	27,690	26,481	30,655	40,121	51,906	50,442	48,897

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan	3,942,848	0.44	312.77	240,479	2024-12-25	1539.58%
HDFC Banking and Financial Services Fund	1,418,663	3.1	112.54	240,479	2024-12-25	489.93%
HDFC Multi Cap Fund	1,326,953	0.68	105.26	240,479	2024-12-25	451.8%
HDFC Large and Mid Cap Fund - Regular Plan	1,262,745	0.47	100.17	240,479	2024-12-25	425.1%
Tata Banking and Financial Services Fund	547,551	1.95	43.43	240,479	2024-12-25	127.69%
Tata Business Cycle Fund	345,545	1.07	27.41	240,479	2024-12-25	43.69%
Mirae Asset Banking and Financial Services Fund	300,300	1.31	23.82	240,479	2024-12-25	24.88%
Edelweiss Recently Listed IPO Fund	265,000	2.22	21.02	240,479	2024-12-25	10.2%
Tata Multi Asset Opportunities Fund	240,479	0.63	19.08	240,479	2024-12-25	0%
WhiteOak Capital Flexi Cap Fund	238,513	0.53	18.92	240,479	2024-12-25	-0.82%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	10.00	10.00
Basic EPS (Rs.)	28.64	20.71	16.09	140.13	103.24
Diluted EPS (Rs.)	28.39	20.49	15.92	136.06	100.70
Cash EPS (Rs.)	29.42	21.31	15.99	144.43	106.33
Book Value[Excl.RevalReserv]/Share (Rs.)	177.68	148.94	127.35	903.95	760.13
Book Value[Incl.RevalReserv]/Share (Rs.)	177.68	148.94	127.35	903.95	760.13
Revenue From Operations / Share (Rs.)	74.64	52.20	43.04	409.34	307.52
PBDIT / Share (Rs.)	55.02	37.35	31.48	317.03	225.28
PBIT / Share (Rs.)	54.18	36.76	31.06	312.59	221.34
PBT / Share (Rs.)	38.16	27.62	20.74	185.78	136.54
Net Profit / Share (Rs.)	28.58	20.71	15.57	139.99	102.40
PBDIT Margin (%)	73.71	71.55	73.12	77.44	73.25
PBIT Margin (%)	72.58	70.42	72.15	76.36	71.97
PBT Margin (%)	51.12	52.91	48.18	45.38	44.39
Net Profit Margin (%)	38.29	39.68	36.16	34.19	33.29
Return on Networth / Equity (%)	16.08	13.90	12.22	15.48	13.47
Return on Capital Employeed (%)	30.19	21.85	14.39	21.98	28.78
Return On Assets (%)	7.15	6.93	7.15	6.19	6.01
Long Term Debt / Equity (X)	0.00	0.12	0.68	0.56	0.00
Total Debt / Equity (X)	1.22	0.97	0.68	1.48	1.22
Asset Turnover Ratio (%)	0.21	0.20	0.20	0.20	0.23
Current Ratio (X)	1.79	2.26	111.86	2.66	1.80
Quick Ratio (X)	1.79	2.26	111.86	2.66	1.80
Interest Coverage Ratio (X)	3.43	4.09	3.05	2.50	2.66
Interest Coverage Ratio (Post Tax) (X)	2.78	3.27	2.51	2.10	2.21
Enterprise Value (Cr.)	25677.10	18344.82	0.00	0.00	0.00
EV / Net Operating Revenue (X)	11.76	12.06	0.00	0.00	0.00
EV / EBITDA (X)	15.96	16.86	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	9.64	10.31	0.00	0.00	0.00
Price / BV (X)	4.05	3.61	0.00	0.00	0.00
Price / Net Operating Revenue (X)	9.64	10.31	0.00	0.00	0.00
EarningsYield	0.03	0.03	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Five-Star Business Finance Ltd as of December 27, 2024 is: 832.67

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 27, 2024, Five-Star Business Finance Ltd is Undervalued by 5.27% compared to the current share price 791.00

Intrinsic Value of Five-Star Business Finance Ltd as of December 27, 2024 is: 613.67

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 27, 2024, Five-Star Business Finance Ltd is Overvalued by 22.42% compared to the current share price 791.00

Last 5 Year EPS CAGR: -26.30%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Cash Conversion Cycle of 0.00, which is a positive sign. The company has shown consistent growth in sales (164.22 cr) and profit (284.56 cr) over the years.	The stock has a low average ROCE of 13.75%, which may not be favorable. The stock has a high average Working Capital Days of 37.25, which may not be favorable. The company has higher borrowings (3,077.00) compared to reserves (2,798.67), which may suggest financial risk.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Five-Star Business Finance Ltd:
1. Net Profit Margin: 38.29%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 30.19% (Industry Average ROCE: 19.97%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 16.08% (Industry Average ROE: 10.35%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 2.78
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 1.79
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 23.8 (Industry average Stock P/E: 30.63)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 1.22
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Five-Star Business Finance Ltd. is a Public Limited Listed company incorporated on 07/05/1984 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is U65991TN1984PLC010844 and registration number is 010844. Currently Company is involved in the business activities of Other financial activities. Company’s Total Operating Revenue is Rs. 1254.06 Cr. and Equity Capital is Rs. 29.13 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Non-Banking Financial Company (NBFC)	New No. 27, Old No. 4, Chennai (Madras) Tamil Nadu 600010	secretary@fivestargroup.in http://www.fivestargroup.in

Management
Name	Position Held
Mr. Lakshmipathy Deenadayalan	Chairman & Managing Director
Mr. Thirulokchand Vasan	Non Executive Director
Mr. T T Srinivasaraghavan	Independent Director
Mrs. Bhama Krishnamurthy	Independent Director
Mr. Anand Raghavan	Independent Director
Mr. Ramkumar Ramamoorthy	Independent Director

FAQ

What is the latest intrinsic value of Five-Star Business Finance Ltd?

The latest intrinsic value of Five-Star Business Finance Ltd as on 27 December 2024 is ₹832.67, which is 5.27% higher than the current market price of ₹791.00. The stock has a market capitalization of 23,185 Cr. and recorded a high/low of 944/600 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹5,694 Cr and total liabilities of ₹12,820 Cr.

What is the Market Cap of Five-Star Business Finance Ltd?

The Market Cap of Five-Star Business Finance Ltd is 23,185 Cr..

What is the current Stock Price of Five-Star Business Finance Ltd as on 27 December 2024?

The current stock price of Five-Star Business Finance Ltd as on 27 December 2024 is 791.

What is the High / Low of Five-Star Business Finance Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Five-Star Business Finance Ltd stocks is 944/600.

What is the Stock P/E of Five-Star Business Finance Ltd?

The Stock P/E of Five-Star Business Finance Ltd is 23.8.

What is the Book Value of Five-Star Business Finance Ltd?

The Book Value of Five-Star Business Finance Ltd is 196.

What is the Dividend Yield of Five-Star Business Finance Ltd?

The Dividend Yield of Five-Star Business Finance Ltd is 0.00 %.

What is the ROCE of Five-Star Business Finance Ltd?

The ROCE of Five-Star Business Finance Ltd is 15.8 %.

What is the ROE of Five-Star Business Finance Ltd?

The ROE of Five-Star Business Finance Ltd is 17.5 %.

What is the Face Value of Five-Star Business Finance Ltd?

The Face Value of Five-Star Business Finance Ltd is 1.00.