NBFC stock jumps up to 12% after announcing 30% increase in net profits in Q1

With a market capitalization of Rs 21,471 crore, NBFC shares soared 12 percent and reached a 52-week high price in early trade on Monday following the release of the company’s impressive June quarter financial results.

Five-Star Business Finance Ltd shares reached a 52-week high of Rs 819.70 on the National Stock Exchange at 2:27 p.m., and were trading at Rs 737, up 1.64 percent or Rs 11.90.

According to the company’s exchange filing, Five-Star Business Finance reported a 42 percent increase in revenue to Rs 480.4 crore in Q1FY24, compared to Rs 337.9 crore in the previous year’s equivalent period (Q1FY23).Furthermore, its net profit increased by 31 percent in Q1FY24 to Rs 183 crore from Rs 139 crore in Q1FY23.

Loan disbursements climbed 99 percent year on year to Rs 1,131 crore from Rs 568 crore in Q1 FY23, while AUM increased 43 percent year on year to Rs 7,583 crore from Rs 5,296 crore as of June 30, 2022.

Compared to the previous quarter,The NBFCs operating revenue increased by 10 percent to Rs 480 crore in Q1FY24 from Rs 435 crore in Q4FY23, while the net profit increased by 9 percent to Rs 183 crore from Rs 168 crore.

During the June quarter, the company opened 13 new branches. The total number of branches is 386, up from 311 on June 30, 2022, and the company Increased number of lending relationships from 30 as of Mar 2019 to 48 as of June 2024.

Five-Star Business Finance Shares have gained 21 percent on YTD basis, while the 1-year return stands at 50 percent.

Five-Star Business Finance is an NBFC providing secured financial solutions to Small Business customers and Self-employed Individuals who are largely cut-off from the formal lending ecosystem.

Written by Omkar Chitnis

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