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

• Market Cap: ₹149.48B
• Dividend Yield: 0.36%
• Average Volume (3M): 56.59K
• Price to Earnings (P/E): 13.5
• 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): 9.70
• Shares Outstanding: 294,533,540
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹655.00 ▲(23.05% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful business model and expanding market presence, enhancing long-term sustainability.

Strong Equity Base

A strong equity base provides financial stability and supports the company's ability to meet its obligations, fostering long-term resilience.

Profitability

Strong profitability through effective pricing and cost management enhances the company's ability to reinvest in growth and weather economic downturns.

Negative Factors

High Leverage

High leverage can increase financial risk, especially during economic downturns, potentially impacting the company's long-term financial health.

Negative Cash Flows

Negative cash flows from operations suggest potential liquidity issues, which could constrain the company's ability to fund growth or meet obligations.

Decline in EBIT

A decline in EBIT may indicate challenges in maintaining profitability, potentially affecting the company's ability to invest in future growth.

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 generates revenue primarily through interest income on loans provided to SMEs. The company assesses the creditworthiness of clients and sets interest rates accordingly, which contributes significantly to its earnings. Additionally, FIVESTAR earns fees from its financing services, including origination fees, processing fees, and late payment fees. Invoice factoring also serves as a key revenue stream, allowing the company to charge a percentage of the invoice value as a fee. Strategic partnerships with banks and financial institutions enhance FIVESTAR's service offerings and client reach, further boosting its revenue potential.

Five-Star Business Finance Limited Financial Statement Overview

Summary

Five-Star Business Finance Limited shows strong revenue growth and profitability, supported by a solid equity base. However, high leverage and negative cash flows from operations pose potential risks.

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	28.32B	27.06B	20.78B	14.70B	12.33B	10.14B
Gross Profit	17.25B	16.61B	12.70B	10.07B	6.96B	5.57B
EBITDA	15.91B	15.36B	11.72B	9.09B	6.39B	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: Negative
• Last Price: 532.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FIVESTAR, the sentiment is Negative. The current price of 532.3 is below the 20-day moving average (MA) of 552.00, below the 50-day MA of 587.25, and below the 200-day MA of 636.90, indicating a bearish trend. The MACD of -17.21 indicates Positive momentum. The RSI at 26.89 is Positive, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FIVESTAR	67 Neutral	₹149.48B	13.49	―	0.36%	20.44%	13.10%
IIFL	66 Neutral	₹275.95B	32.13	―	―	8.01%	-20.87%
PSB	65 Neutral	₹192.43B	16.24	―	0.26%	18.54%	67.80%
AADHARHFC	64 Neutral	₹206.83B	20.82	―	―	―	―
CREDITACC	54 Neutral	₹212.73B	159.08	―	0.77%	0.75%	-90.03%
MANAPPURAM	49 Neutral	₹241.40B	53.75	―	0.80%	-3.68%	-80.12%

Five-Star Business Finance Limited Corporate Events

Five-Star Business Finance Schedules Investor Meeting with Wellington Asset Management

Five-Star Business Finance Limited has announced a scheduled meeting with investors and analysts, specifically with Wellington Asset Management on November 24, 2025. The meeting will be conducted physically, and discussions will be based on publicly available information, ensuring no unpublished price-sensitive information is disclosed. This initiative reflects the company’s commitment to transparency and engagement with its stakeholders, potentially enhancing its industry positioning and investor relations.

Five-Star Business Finance Schedules Investor Meetings for November 2025

Five-Star Business Finance Limited has announced a schedule of virtual meetings with investors and analysts, including Motilal Oswal Alternates and India First Life Insurance, on November 25, 2025. These meetings aim to discuss publicly available information about the company’s operations and strategies, ensuring transparency and engagement with stakeholders, while no unpublished price-sensitive information will be disclosed.