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These 4 slides Below Summarizes your decision on what to do with a Company👇👇 Stock name: Five Star Business Finance 1.GROWTH Once used to grow north of 30% and always guided 30% Aum growth, which was revied downwards to 25% in Q2FY25 and still remains intact, and grows at 20% yoy🔴 2.MARGINS The yield are on constant decline as they had reduced their guidance on incremental Yield from 24% in Q2FY25 to 22% going ahead,which is dragging overall yields and management guides yields to drop down 65-70 bps every year, which ultimately leads to compression of Spread and nim's🟥 3.Asset Quality There is deterioration in asset quality consistently from last 4 quarters where GNPA,NNPA , and 30+ DPD are on rise, and on top of that C.E are on consistent decline from last 5 quarters(Always Look at the direction or Trajectory)🔻 4.Return Ratios As Growth Halts down and asset quality deteriorates, management slows down disbursements , and focuses more on recoveries or collections, which leads to increase in provisions or credit cost, which casues compression of ROA and ROE follows southwards.🔻 Outlook: Management Commentary: ->Slowdown in <3L Ticket size segment , focusing more on higher than 5L-10L segment ->Pain to continue in Q2, and after that , H2 will see some improvement ->MoM improvement in C.E FY26 Guidance : 📈 AUM: ~25% YoY 💰 PAT: 12–15% YoY ⚠️ Credit Cost: 1.2–1.25% (up from 0.8–1%) Medium Term Guidance(3 years): ➡️ AUM Growth: ~25% CAGR 📉 ROA to ~7%, Leverage 3x → ROE ~20% (earlier guidance of 25%) 📊 Yield to settle at ~22%, dropping 65–70bps yearly 💥 Credit Cost: 1.2–1.25% -> SO WILL NOT BE ABLE TO SEE 30% AUM GROWTH GOING AHEAD🔴🔴 Disclamer: No Buy/Sell Recommendation #fivestarbusiness #sbfc #masfinancials