The share price of midcap stock fell 3.5 percent to its intraday low of Rs 729.45 from its previous close of Rs 756.55 after the large block deal of 8 percent of the company.
According to a CNBC TV18 report, a block deal involving around 2.3 crore shares or 8 percent equity share of Five Star Business Finance. The deal, which occurred at Rs 730 per share, is said to be worth Rs 1,704 crore.
The transaction’s buyers and sellers are still unknown. On Thursday the venture capital firm Matrix Partners India was planning to sell a 5.87 percent stake in Five-Star Business Finance. The potential divestment includes the option to increase the stake sale to 8.81 percent, according to the report of CNBC-TV18.
Looking forward to Five-Star Business Finance Ltd financials, the net revenue increased by 44 percent year over year, from Rs 360.54 crore in Q2FY23 to Rs 518.81 crore in Q2FY24. Their revenue rose by 8 percent sequentially from Rs 480.37 crore in Q1FY24 to the current levels.
In addition, the company’s net profit decreased by 38 percent year over year, from Rs 144.17 crores in Q2FY23 to Rs 199.38 crores in Q2FY24. Their net profit increased by 8 percent on a sequential basis from Rs 183.7 crore in Q1FY24 to the current levels.
The company has a lower price-to-earnings ratio of 31 compared to its peers, also it has debt to equity ratio of 0.99, with a return on equity of 15 percent and a return on capital employed of 14 percent.
Five-Star Business Finance Limited is a midcap stock with a market capitalization of Rs 21,770 crores. The stock price of the company has increased by 28 percent in the last six months and 23 percent in the year to date.
The promoters own 31.3 percent of the company, the general public owns 11 percent, foreign institutional investors own 50.2 percent and domestic institutional investors own 7.5 percent.
Five Star Business Finance Limited, founded in 1984, is an NBFC-ND-SI that provides secured business loans to microentrepreneurs and self-employed individuals throughout South India.
Written by Sriram KV
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
