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Hold Five-Star Business Finance: target of Rs 720: ICICI Securities

ICICI Securities recommended hold rating on Five-Star Business Finance with a target price of Rs 720 in its research report dated May 01, 2025.

ICICI Securities has recommended a 'Hold' rating for Five-Star Business Finance with a target price of Rs 720, as mentioned in their research report dated May 25, 2023. The brokerage firm noted that Five-Star Business Finance reported a strong performance in Q4FY23 with a 44% year-on-year increase in assets under management (AUM) to Rs 6,915 crore and a 41% rise in disbursements to Rs 1,200 crore. Despite the robust growth, the company's net interest margin (NIM) decreased by 10 basis points quarter-on-quarter to 18.4%, primarily due to higher borrowing costs. ICICI Securities also highlighted that while the company's asset quality remained stable, with gross stage-3 assets at 1.35%, the management anticipates a potential increase in credit costs in FY24 due to the ongoing economic recovery and potential stress in certain customer segments.

Read the Full moneycontrol.com Article at:
https://www.moneycontrol.com/news/business/earnings/hold-five-star-business-finance-target-of-rs-720-icici-securities-13013063.html