Five-Star Business Finance Ltd.’s stock price fell by as much as 11% on Wednesday, October 30, even as the company reported strong results for the September quarter.
The stock price fell after management lowered the growth outlook for assets under management (AUM) from 30% to 25% in an earnings conference.
Five-Star Business Finance reported a 32.2% year-on-year increase in assets under management to Rs 10,927 crore in the September quarter.
On the asset quality front, gross NPAs for the quarter stood at 1.47% from 1.41% in June. Net NPAs for the quarter stood at 0.71%, up from 0.68% in the previous quarter.
Provisions for the quarter doubled from a year earlier to Rs 21.8 billion. On a quarter-over-quarter basis, provisions increased by 17.5%.
Brokerage firm Avendus Spark has downgraded the stock’s rating from “add” to “downgrade” and lowered its price target to 802 rupees from 857 rupees.
DAM Capital also downgraded the stock’s rating to “neutral” from “buy” and lowered its price target from ₹935 to ₹100,835.
Of the 11 analysts covering Five Star Business Finance, 9 rate the stock as a buy, with 1 each rating it a hold and a sell.
Five Star Business Finance shares were trading 10.3% lower at £787.1. Wednesday’s decline narrowed the year-to-date rise to 7%. This is the stock’s largest single-day decline since its listing in November 2022.
First Published: October 30, 2024 10:43 AM IST
