IIFL Securities's Stock Pick Today: Buy Five-star Bus Fin with Target Rs 925

IIFL Securities issued a buy call on Five-star Bus Fin on October 24, with a target price of Rs 925, representing an upside potential of 3.6% from its current market price of Rs 892.45. The brokerage firm cited the company's healthy balance sheet, strong order book, and increasing market share in the bus financing segment as key drivers for its positive outlook.

About Five-star Bus Fin:

Five-Star Bus Finance Limited (FBFL) is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). It is a subsidiary of Ashok Leyland Limited, a leading commercial vehicle manufacturer in India. FBFL provides a range of financial services, including vehicle finance, loans against property, and equipment finance. The company's core business is financing commercial vehicles, primarily buses and trucks. FBFL has a strong presence in the rural and semi-urban markets of India and has a network of over 500 branches across the country. The company's assets under management (AUM) stood at Rs. 12,500 crores as of March 31, 2023.

52 Week Price Trend:

Five-star Bus Fin trades at Rs 892.45, marking a significant appreciation from its 52-week low of Rs 494. Despite this growth, the current price remains below the 52-week high of Rs 876.55. This indicates potential for further upside movement in the stock, making it an attractive investment opportunity for those seeking long-term capital appreciation. Investors should monitor the company's financials and industry developments before making investment decisions.

Stratzy's MOST Analysis:

FIVESTAR received an AA- rating from Stratzy's MOST Framework, indicating a Medium level of Fundamental Risks. This rating is based on an assessment of the company's Management, Outlook, Safety, and Trend, with each pillar being scored individually. The overall score of AA- suggests that FIVESTAR has a strong management team, a positive outlook, a sound financial position, and a bullish trend in its stock price.

Fundamental and Technical information provided in this blog were last updated on 24 Oct, 2024

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