Buy Five-star Bus Fin, target price Rs 812: IIFL Securities

IIFL Securities has issued a 'buy' call on Five-star Bus Fin, with a target price of Rs 812. This recommendation comes as the current market price of Five-star Bus Fin stands at Rs 791.9. This implies an upside potential of approximately 2.6%. The brokerage firm believes that the company's strong fundamentals and growth prospects make it an attractive investment opportunity.

About Five-star Bus Fin:

Five-Star Business Finance Limited (Five-Star Bus Fin) is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). It is primarily engaged in providing vehicle finance to individuals and small businesses in the commercial vehicle and passenger vehicle segments. The company offers a range of financial products, including loans for new and used vehicles, loans against property, and business loans. It operates across 10 states in India and has a network of over 100 branches and 1,200 employees. Five-Star Bus Fin is listed on the National Stock Exchange (NSE) and has a market capitalization of over INR 2,000 crores.

52 Week Price Trend:

Five-star Bus Finance Limited's (NSE: FIVESTAR) current market price (CMP) stands at Rs 791.9. The stock has witnessed a volatile year, reaching a 52-week high of Rs 876.55 and a 52-week low of Rs 494. This significant difference highlights the potential risks and rewards involved in investing in the company. Factors influencing the stock's performance include the overall economic climate, competition within the non-banking financial sector, and the company's financial performance and growth prospects.

Stratzy's MOST Analysis:

According to Stratzy's MOST framework, FIVESTAR has been rated AA-, indicating medium fundamental risks. This rating is derived from four pillars: Management, Outlook, Safety, and Trend. The rating suggests that FIVESTAR has sound management, a positive business outlook, adequate financial safety, and favorable market trends. While the company may face some challenges, its overall fundamentals are considered strong, indicating a relatively low level of investment risk.

Fundamental and Technical information provided in this blog were last updated on 20 Sep, 2024

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