The stock fell after the management during its earnings call trimmed its growth guidance for the Assets Under Management (AUM) to 25% from 30% earlier.
For the September quarter, Five-Star Business Finance reported an AUM growth of 32.2% from the same quarter last year to ₹10,927 crore.
On the asset quality front, Gross NPA for the quarter stood at 1.47% from 1.41% in June. Net NPA for the quarter stood at 0.71% from 0.68% earlier.
Provisions during the quarter doubled from last year to ₹21.8 crore. When compared on a sequential basis, provisions went up by 17.5%.
Brokerage firm Avendus Spark downgraded the stock to “reduce” from its earlier rating of “Add” and cut its price target to ₹802 from ₹857 earlier.
DAM Capital has also downgraded the stock to “neutral” from its earlier rating of “buy” and cut its price target by ₹100 to ₹835 from ₹935 earlier.
Out of the 11 analysts that have coverage on Five-Star Business Finance, nine of them have a “buy” rating on the stock, while one analyst each has a “hold” and “sell” rating.
Shares of Five-Star Business Finance are trading 10.3% lower at ₹787.1. The fall on Wednesday has trimmed its year-to-date gains down to 7%. This is also the biggest single-day fall the stock has seen since its listing in November 2022.
First Published: Oct 30, 2024 10:43 AM IST
