Five-Star Business Finance Limited (FIVESTAR) AI Stock Analysis

• Market Cap: ₹156.66B
• Dividend Yield: 0.33%
• Average Volume (3M): 56.59K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.54
• Revenue Growth: 20.44%
• EPS Growth: 13.10%
• Country: IN
• Employees: 9,322
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 9.50
• Shares Outstanding: 294,474,430
• 10 Day Avg. Volume: 28,179
• 30 Day Avg. Volume: 56,591
• PEG Ratio: 0.69
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 7.19
• P/FCF Ratio: -18.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ₹655.00 ▲(8.55% Upside)

Five-Star Business Finance Limited has a solid financial performance with strong revenue growth, but faces risks from high leverage and negative cash flows. Technical indicators show bullish momentum, though caution is advised due to overbought signals. Valuation appears fair, but the low dividend yield limits income potential.

Five-Star Business Finance Limited Business Overview & Revenue Model

Company Description

Five-Star Business Finance Limited provides loans for business, home renovation/extension, and other mortgage purposes in India. The company was formerly known as Five Star Business Credits Limited and changed its name to Five-Star Business Finance Limited in July 2016. Five-Star Business Finance Limited was incorporated in 1984 and is based in Chennai, India.

How the Company Makes Money

FIVESTAR makes money primarily through the interest income generated from the loans it provides to its clients. The company offers secured business loans, which are backed by collateral, ensuring a lower risk profile. The interest rates on these loans are competitively set to attract small and medium-sized enterprises while ensuring a profitable margin for the company. Additionally, FIVESTAR may earn revenue through various fees associated with loan processing, documentation, and penalties for late payments. The company's earnings are further supported by maintaining a robust portfolio of diverse clients across different sectors, thus minimizing risk and maximizing income potential.

Five-Star Business Finance Limited Financial Statement Overview

Summary

Five-Star Business Finance Limited exhibits strong revenue growth and profitability, supported by a solid equity base. However, high leverage and negative cash flows from operations pose potential risks. Focus on improving operational efficiency and cash flow management is crucial.

Income Statement

Five-Star Business Finance Limited has shown consistent revenue growth, with a notable increase in Total Revenue over the years. The Gross Profit Margin remains strong, indicating robust pricing power or cost management. However, there is a slight decline in EBIT, which might suggest rising operational costs or increased competition affecting profitability.

Balance Sheet

The company maintains a high Debt-to-Equity Ratio, reflecting significant leverage which can be risky in times of financial uncertainty. However, the consistent growth in Stockholders' Equity and a reasonable Equity Ratio indicate a strong capital base supporting its financial obligations.

Cash Flow

The company's cash flow from operations has been persistently negative, highlighting potential liquidity issues or aggressive growth strategies. Despite this, the company has managed to secure financing, reflected in positive financing cash flow. The negative Free Cash Flow indicates that the firm is investing heavily, possibly for future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.59B	28.48B	21.83B	15.21B	12.54B	10.14B
Gross Profit	27.43B	28.17B	21.58B	15.03B	12.41B	5.57B
EBITDA	15.51B	21.31B	11.72B	10.91B	9.25B	4.90B
Net Income	10.87B	10.72B	8.36B	6.03B	4.54B	3.59B
Balance Sheet
Total Assets	0.00	144.21B	116.89B	87.03B	63.43B	57.94B
Cash, Cash Equivalents and Short-Term Investments	0.00	21.55B	16.72B	15.81B	9.18B	12.69B
Total Debt	0.00	79.22B	63.52B	42.77B	25.80B	34.25B
Total Liabilities	-63.05B	81.16B	64.93B	43.63B	26.33B	34.75B
Stockholders Equity	63.05B	63.05B	51.96B	43.40B	37.10B	23.18B
Cash Flow
Free Cash Flow	0.00	-11.28B	-21.45B	-11.35B	-2.86B	-1.61B
Operating Cash Flow	0.00	-10.45B	-21.22B	-11.23B	-2.77B	-1.57B
Investing Cash Flow	0.00	-5.85B	2.10B	1.62B	-3.84B	1.02B
Financing Cash Flow	0.00	15.93B	21.06B	16.88B	70.24M	10.33B

Five-Star Business Finance Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 603.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FIVESTAR, the sentiment is Positive. The current price of 603.4 is above the 20-day moving average (MA) of 539.77, above the 50-day MA of 541.61, and below the 200-day MA of 663.96, indicating a neutral trend. The MACD of 11.19 indicates Negative momentum. The RSI at 80.15 is Negative, neither overbought nor oversold. The STOCH value of 82.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FIVESTAR.

Five-Star Business Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FIVESTAR	―	₹156.66B	14.23	―	0.33%	20.44%	13.10%
IIFL	―	₹211.62B	65.29	―	―	2.65%	-81.55%
PSB	―	₹223.79B	18.90	―	0.22%	18.54%	67.80%
MANAPPURAM	―	₹236.96B	29.62	―	1.09%	4.83%	-64.41%
CREDITACC	―	₹227.51B	117.07	―	0.68%	0.75%	-90.03%

Five-Star Business Finance Limited Corporate Events

Five-Star Business Finance Schedules Investor Meeting with Burman Capital

Five-Star Business Finance Limited has announced a schedule for investor and analyst meetings, with a virtual meeting planned with Burman Capital on September 26, 2025. The company has made its investor presentation available on its website, ensuring transparency by discussing only publicly accessible information and avoiding any unpublished price-sensitive information.

Five-Star Business Finance Schedules Investor Meeting

Five-Star Business Finance Limited has announced a schedule for an upcoming investor and analyst meeting. The meeting, which will be held virtually with Nomura Asset Management on September 29, 2025, is part of the company’s compliance with SEBI regulations. The discussions will be based on publicly available information, ensuring no unpublished price-sensitive information will be shared.

Five-Star Business Finance Schedules Investor Meeting with Enam Holdings

Five-Star Business Finance Limited has announced a scheduled meeting with investors and analysts, specifically with Enam Holdings, to be conducted virtually on September 24, 2025. The company has made available an investor presentation on its website, ensuring that discussions will be based on publicly available information, with no unpublished price-sensitive information to be disclosed. This meeting is part of the company’s compliance with SEBI regulations, reflecting its commitment to transparency and stakeholder engagement.

Five-Star Business Finance Schedules Investor Meeting

Five-Star Business Finance Limited has announced its schedule for upcoming investor and analyst meetings, in compliance with SEBI regulations. The company will meet with Unifi Capital on September 22, 2025, and has made its investor presentation available on its website, ensuring discussions will be based on publicly available information.

Five-Star Business Finance Gains Approval for Promoter Reclassification

Five-Star Business Finance Limited has received approval from the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) for the reclassification of certain Promoters and Promoter Groups as public shareholders. This reclassification aligns with Regulation 31A of the SEBI LODR Regulations, resulting in entities such as Matrix Partners India and Peak XV Partners, among others, being reclassified from Promoter to Public categories, with most holding no shareholding post-reclassification. This move could impact the company’s market perception and shareholder composition, potentially influencing its governance and strategic direction.