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

• Market Cap: ₹162.76B
• Dividend Yield: N/A
• Average Volume (3M): 31.57K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.40
• Revenue Growth: 25.49%
• EPS Growth: 19.81%
• Country: IN
• Employees: 9,322
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 9.00
• Shares Outstanding: 294,448,820
• 10 Day Avg. Volume: 19,914
• 30 Day Avg. Volume: 31,572
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹612.00
• Price Target Upside: 12.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ₹612.00 ▲(12.19% Upside)

The overall score reflects strong financial performance tempered by high leverage and negative cash flows. Bearish technical indicators further weigh on the stock, while a reasonable valuation provides some support. Improving operational efficiency and cash flow management is key to enhancing the stock's outlook.

Five-Star Business Finance Limited Business Overview & Revenue Model

Company Description

Five-Star Business Finance Limited (FIVESTAR) is a non-banking financial company (NBFC) in India that specializes in providing secured business loans to small and medium-sized enterprises (SMEs) and self-employed individuals. The company's core services include offering customized financial solutions that cater to the unique needs of its clientele, primarily focusing on sectors such as retail, wholesale, and manufacturing. FIVESTAR is committed to fostering entrepreneurship and supporting business growth by ensuring access to necessary funds.

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	28.34B	20.91B	16.60B	15.21B	12.54B	10.14B
Gross Profit	18.97B	20.91B	12.41B	9.00B	7.20B	5.57B
EBITDA	15.18B	21.31B	11.72B	10.91B	9.25B	4.90B
Net Income	10.72B	10.72B	8.36B	6.03B	4.54B	3.59B
Balance Sheet
Total Assets	144.21B	144.21B	116.89B	87.03B	63.43B	57.94B
Cash, Cash Equivalents and Short-Term Investments	21.55B	21.55B	16.72B	15.81B	9.18B	12.69B
Total Debt	79.22B	79.22B	63.16B	42.77B	25.59B	34.25B
Total Liabilities	81.16B	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: 545.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 545.5 is below the 20-day moving average (MA) of 583.95, below the 50-day MA of 678.13, and below the 200-day MA of 696.67, indicating a bearish trend. The MACD of -30.81 indicates Negative momentum. The RSI at 25.73 is Positive, neither overbought nor oversold. The STOCH value of 8.76 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	$17.90B	11.92	10.28%	3.72%	9.73%	1.69%
FIVESTAR	56 Neutral	₹162.76B	14.92		―	25.49%	19.81%
AADHARHFC	―	₹217.22B	22.80		―	―	―
IIFL	56 Neutral	₹181.66B	56.04		0.75%	2.65%	-81.55%
MANAPPURAM	56 Neutral	₹221.26B	27.82		1.15%	4.83%	-64.41%
PSB	54 Neutral	₹196.48B	17.53		0.25%	20.55%	74.68%
CREDITACC	51 Neutral	₹223.65B	110.46		0.73%	3.79%	-87.06%

Five-Star Business Finance Limited Corporate Events

Five-Star Business Finance Confirms No Deviation in Fund Utilization

Five-Star Business Finance Limited has reported to the National Stock Exchange of India and BSE Limited that there were no deviations or variations in the utilization of funds raised through the issuance of convertible share warrants for the quarter ending June 30, 2025. The company confirmed that the funds raised are being used as intended, with no proceeds received for warrant conversion during this period. This announcement reassures stakeholders of the company’s adherence to its financial plans and regulatory compliance, maintaining transparency in its operations.