Five Star Business Finance - Carving Out Niche In Underserved Business Segment: ICICI Securities
A customer counts Indian rupee banknotes at a jewellery store. (Photographer: Dhiraj Singh/Bloomberg)

Five Star Business Finance - Carving Out Niche In Underserved Business Segment: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We organised an investor interaction with the senior management of Five Star Business Finance Ltd. to discuss the company’s evolution, business dynamics and strategy.

Five Star equity instruments are unlisted and not traded on any exchange.

The report has been prepared based on interaction with the senior management and information received/verified from/by the company.

Founded in 1984, the company is an non banking financial company with assets under management of Rs 45 billion catering to a business community of 1,77,000 customers with an average outstanding ticket size of Rs 2,50,000.

It has created a niche in lending to ‘underserved’ business owners and self-employed segment in tiers three to six cities, thereby commanding internal rate of returns of ~24% and spreads of ~12%.

Click on the attachment to read the full report:

ICICI Securities Five Star Business Finance Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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