Five Star Business Finance Share Price is the Talk of the Town
When it comes to the Indian financial sector, there are some companies that have gained more attention than others in the recent past. One such company is Five Star Business Finance, which has become the talk of the town owing to its share price movement.
In this article, we will delve deeper into why Five Star Business Finance share price has been in the limelight and what investors can expect from this company in the future.
Background
Five Star Business Finance is a non-banking financial company (NBFC) that was started in 1984. Headquartered in Chennai, the company offers secured and unsecured loans to small and medium-sized enterprises (SMEs) across India.
The company has a diversified portfolio and offers loans for various purposes such as working capital, machinery finance, business loans, and gold loans. As of June 2021, the company had a loan book size of INR 4,000 crore and a customer base of over 45,000.
Share price movement
Five Star Business Finance share price movement has been impressive in the last few months. The company went public in 2019, and since then, its share price has grown multifold.
In the last six months alone, the share price has grown by a staggering 190%. During this time, the stock has outperformed the benchmark NIFTY 50 index, which has grown by 13%.
Reasons for the share price growth
There are several reasons why Five Star Business Finance share price has been on an upward trajectory:
1. Strong financial performance: Five Star Business Finance has been consistently delivering strong financial results. In the last quarter, the company posted a net profit of INR 44.9 crore, which was a 17% increase YoY. The company’s assets under management (AUM) have also been growing steadily.
2. Robust business model: Five Star Business Finance has a unique business model that focuses on providing loans to the underserved SME sector. The company has a strong presence in Tamil Nadu and has been expanding to other regions as well. This has allowed them to select quality borrowers and maintain a high credit quality.
3. Positive industry outlook: The SME sector in India has been gaining momentum, and analysts expect this trend to continue. There is a growing demand for unsecured credit, and Five Star Business Finance is well-positioned to capitalize on this trend.
Future outlook
Looking ahead, Five Star Business Finance’s growth prospects look promising. The company has been expanding geographically and has plans to tap into new markets in the future. They have also been exploring new loan products and expanding their customer base.
In conclusion, Five Star Business Finance has been making waves in the Indian financial sector. With a strong business model, a growing loan book size, and a positive industry outlook, the company is poised for growth. Investors should keep an eye on this company, and it wouldn’t be surprising to see its share price continue to soar in the future.
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