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RECOMMENDATION

Neutral

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RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

  • Five Star Business Finance Growth

Get info on Five Star Unlisted Shares before buying, selling and investing - Read our Research report on Five Star Peer Comparison Information like - Revenue Growth, EPS Growth, & Five Star Profitablity Ratios.

Five Star Business Finance Revenue Growth

Growth in %

  • 31.72%

    1 Year

  • 40.88%

    3 Year

  • 70.35%

    5 Year

Revenue of the company is continuously increasing, despite the pandemic, they have seen 18.6% growth in FY22. The company has seen an increase in Interest income from loans and interest income from deposits. We can see an increase in the growth ratios of the company which is primarily because of its organic expansion. The company also added 10 branches resulting in the branch network increasing to 262 from 252 during the previous financial year.

Five Star Business Finance Net Profit Growth(PAT)

Growth in %

  • 26.34%

    1 Year

  • 42.52%

    3 Year

  • 87.40%

    5 Year

The company has seen a jump of around 26%, which is a result of the company's focus on a particular segment and efficient observation of changes in customer behavior, products, regulatory landscape, and navigating economy, but the overall growth of the company is less in comparison to previous years.

In FY22, Five Star saw an increase in the amount of loss provisions from previous years. While by June'20 their collection efficiency rebounded to 92.26%, being one of the first NBFCs to reach a collection efficiency of 90% since the beginning of the pandemic, and subsequently averaged 93.28% collection efficiency for the second quarter of Financial Year 2021.

Five Star Business Finance EPS Growth

Growth in %

  • -88.52%

    1 Year

  • -38.84%

    3 Year

  • 1.88%

    5 Year

The profit of the company is continuously increasing while EPS is showing a downfall due to the share split which has increased no. of shares of the company by 24,47,16,669. The growth of the company was totally organic and such a rise in profit is due to an increase in interest income and operations of the company.

  • Five Star Business Finance Book Value Growth

Growth in %

  • 41.42%

    1 Year

  • 45.50%

    3 Year

  • 80.54%

    5 Year

The book value of the company has seen a sudden rise in recent years due to an increase in its reserves. While the equity of the company has also grown by 13.6%, and the company has increased its statutory reserves and retained earnings to protect the interest of depositors and shareholders. The company has statutory reserves of 271 Cr. which is more than the reserves requirement set by RBI, which makes it safe and reduces its liquidity risk.

Five Star Business Finance EBITDA Growth

Growth in %

  • 26.37%

    1 Year

  • 40.42%

    3 Year

  • 80.61%

    5 Year


Five Star Business Finance Operating Profit Growth

Growth in %

  • 26.82%

    1 Year

  • 40.37%

    3 Year

  • 80.94%

    5 Year

Operating efficiency of the company has improved, this can be illustrated by the company's performance during demonetization, GST implementation, and the COVID-19 pandemic. They have effectively tackled all the problems and have managed their customers well. In FY22, the company closed the year with a Gross Stage 3 Assets (90+ Assets) of 1.05%, which is one of the best amongst companies operating in this customer segment.

Five Star Business Finance Asset Growth

Growth in %

  • 9.48%

    1 Year

  • 39.24%

    3 Year

  • 56.06%

    5 Year

In FY22 Five Star has seen a growth of 17% in its loan book, which has increased its financial assets, the increase specifically took off in 3rd and 4th quarter. There was increase in term loans as well as loans based on collaterals. While the tangible assets of the company which includes computers and vehicles has decreased. 

Five Star Business Finance Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The effects of the COVID-19 pandemic on future results of operations, cash flows and financial condition could adversely affect company's ability to service debt obligations and comply with the covenants in credit facilities and other financing agreements and could result in events of default and the acceleration of indebtedness, but as of now, all the operations are going smoothly but in FY22 Cash from operations of the company has deteriorated. 

  • Five Star Business Finance Sector Specific Ratios


Five Star Business Finance Net NPA

Most of the NPA of the company is from small business loans involving the manufacturing and service sector. While in FY22 the company had higher level of NPA i.e., 53.05 cr. in comparison to FY21.

Five Star Business Finance Return on Risk Weighted Assets(RORWA)

The Assets under management(AUM) of the company has increased as they continued its financing business by focusing on small business loans and small housing loans which has improved the financial health and growth of the Company.

Return on Risk weighted assets of the company has also increased as company is trying to deal more in secured assets and is utilizing them efficiently.

Five Star Business Finance Capital Adequacy Ratio(CAR)

The company maintains an actively managed capital base to cover risks inherent in the business and is meeting the capital adequacy requirements of the regulator, RBI. Capital Adequacy Ratio of your Company stood at 75.2% as on March 31, 2022, as against the minimum requirement of 15% stipulated by Reserve Bank of India.


Five Star Business Finance Gross NPA

Five Star is among the three best for Gross Non-Performing Assets(“Gross NPA”) as a percentage of AUM as of March 31, 2021, they had a Gross NPA as a percentage of AUM of 1.02%. While they have the best asset quality among lenders identified by CRISIL as engaged in extending MSME business loans, with other lenders reporting 90+ DPD in excess of 2%.

  • Five Star Business Finance Solvency Ratios

Five Star Business Finance D/E Ratio

Debt to equity ratio of the company is quite stable and lower in comparison to its peers. The company is increasing its debt and equity hand in hand. In FY22 overall borrowings of the company have decreased.

Five Star Business Finance Current Ratio

The current ratio of the company has declined in comparison to FY21. In FY21 the drastic increase was due to an increase in cash and cash equivalents of the company. Due to the economic slowdown during the pandemic, there was a high risk of cash shortage so the company increased its liquid cash to be safe in a dynamic environment. But the risk has been reduced in FY22 which led to fall in cash and cash equivalent of the company.

Five Star Business Finance Quick Ratio

Five Star Business Finance Interest Coverage Ratio

  • Five Star Business Finance Operating Efficiency

There is marginal increase in all the operating ratios with respect to the last financial year due to increased revenue and cost reduction due to economies of scale. One of the main reason for the same was reduction in provision for bad debts, which is a good sign for the company as they are able to recover maximum amount of loan provided which reduces their risk. The operating efficiency of the company is better than its peers which signifies a strong efficiency position.

Five Star Business Finance Operating Profit EBIT Margin(OPM)


Five Star Business Finance Profit Before Tax Margin (PBT Margin)

Five Star Business Finance Profit After Tax Margin (PAT Margin)

  • Five Star Business Finance Profitablity Ratio


Five Star Business Finance Return on Equity(RoE)

Five Star has the second-best ROE of 15.05% after AU Small Finance Bank, but it has seen a slight decline from FY21. In FY22 the company earned the optimum amount of profit while, there was a small change in reserves of the company, as due to RBI guidelines NBFCs had to increase their reserves. Hence company was able to provide optimum returns to shareholders.

Five Star Business Finance Return to Assets (RoA)

Five Star posted the highest RoA between fiscal 2019 and 2022, with its average RoA over this time period being 7.7%. In FY22 ROA has seen a bit improvement then FY22, which shows as economic condition is improving company is able to provide better returns on its assets.

  • Five Star Business Finance Valuation Ratios

Five Star Business Finance Earning Yield

  • Five Star Business Finance Regulatory Ratios

Five Star Business Finance CAR

Company is maintaining its capital adequacy ratio much higher then standards set by RBI, this suggest that the company has enough capital in comparison to its credit exposure.

Five Star Business Finance Tier 1

Company is maintaining Tier 1 capital well above the RBI minimum standard.

Five Star Business Finance Tier 2

  • Five Star Business Finance NBFC's Ratios

Five Star Business Finance Tier 1 Capital Ratio

Five Star Business Finance Tier 2 Capital Ratio

For the FY20, FY21, and FY22 the company's capital amount raised as Tier-II capital is zero, as they have raised all of its capital through Tier 1.

Five Star Business Finance Tangibe Book Value

Tangible book value of the company is constantly rising due to rise in reserves of the company. Every year the company was increasing its reserves for the safety of depositors and shareholders, while during pandemic it saw a sudden hike of 69.2% in FY20 due to high economic risk.

Five Star Business Finance AUM

The company is constantly growing in terms of its assets and loan portfolio. In FY21 AUM of the company has increased by 14.2%.  Even the company saw disbursal of about Rs.1,250 Cr. which also resulted in the borrower base crossing 1,75,000 during the year.

Five Star Business Finance AUM Growth

The company is continuously increasing its no. of branches and spreading it across different states, which makes them cover huge market and increase their AUM.