Five-Star Business Finance Limited (IN:FIVESTAR)
:FIVESTAR
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Five-Star Business Finance Limited
(FIVESTAR)
Select Model
Select Model
Rating:59Neutral
Price Target:
₹426.00
▼(-19.97% Downside)
Action:ReiteratedDate:01/30/26
The score is primarily weighed down by weak technicals (clear downtrend and negative momentum) and financial risk from high leverage and negative operating cash flow. These are partially offset by solid revenue/margin performance and a reasonable valuation multiple.
Positive Factors
Secured lending focus
Five-Star’s core model is secured lending to self-employed and micro-entrepreneurs, which creates structurally lower recovery risk versus unsecured books. Collateral-backed loans support loss mitigation and make credit outcomes more predictable across business cycles, aiding long-term portfolio resilience.
Negative Factors
High leverage
Elevated debt-to-equity increases interest expense and constrains financial flexibility. In adverse macro or credit cycles, high leverage magnifies earnings volatility and raises refinancing and covenant risks, limiting the company’s ability to absorb shocks without dilutive or costly capital interventions.
Read all positive and negative factors
Positive Factors
Negative Factors
Secured lending focus
Five-Star’s core model is secured lending to self-employed and micro-entrepreneurs, which creates structurally lower recovery risk versus unsecured books. Collateral-backed loans support loss mitigation and make credit outcomes more predictable across business cycles, aiding long-term portfolio resilience.
Read all positive factors
Five-Star Business Finance Limited (FIVESTAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹124.60B
Dividend Yield0.36%
Average Volume (3M)56.59K
Price to Earnings (P/E)14.5
Beta (1Y)0.64
Revenue Growth20.44%
EPS Growth13.10%
CountryIN
Employees9,322
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.40
Shares Outstanding294,566,160
10 Day Avg. Volume28,179
30 Day Avg. Volume56,591
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)3.25
Price to Sales (P/S)7.57
P/FCF Ratio-18.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)42.87
Revenue Forecast (FY)₹29.16B
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 Financ...
How the Company Makes Money
FIVESTAR primarily makes money by originating and servicing secured loans and earning a spread between (a) the interest income and fees it charges borrowers and (b) the cost of funds it pays to raise borrowing capital. Key revenue streams include:...
Five-Star Business Finance Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.53B | 27.06B | 20.78B | 14.70B | 12.33B | 10.14B |
| Gross Profit | 19.45B | 16.61B | 12.70B | 10.07B | 6.96B | 5.57B |
| EBITDA | 16.66B | 15.36B | 11.72B | 9.09B | 6.39B | 4.90B |
| Net Income | 11.05B | 10.72B | 8.36B | 6.03B | 4.54B | 3.59B |
Balance Sheet | ||||||
| Total Assets | 154.35B | 144.21B | 116.89B | 87.03B | 63.43B | 57.94B |
| Cash, Cash Equivalents and Short-Term Investments | 22.25B | 21.55B | 16.72B | 15.81B | 9.18B | 12.69B |
| Total Debt | 83.76B | 79.22B | 63.52B | 42.77B | 25.80B | 34.25B |
| Total Liabilities | 86.28B | 81.16B | 64.93B | 43.63B | 26.33B | 34.75B |
| Stockholders Equity | 68.07B | 63.05B | 51.96B | 43.40B | 37.10B | 23.18B |
Cash Flow | ||||||
| Free Cash Flow | -3.43B | -11.28B | -21.45B | -11.35B | -2.86B | -1.61B |
| Operating Cash Flow | -3.26B | -10.45B | -21.22B | -11.23B | -2.77B | -1.57B |
| Investing Cash Flow | -7.99M | -5.85B | 2.10B | 1.62B | -3.84B | 1.02B |
| Financing Cash Flow | 3.53B | 15.93B | 21.06B | 16.88B | 70.24M | 10.33B |
Five-Star Business Finance Limited Technical Analysis
Neutral
532.30
Price Trends
413.93
Negative
491.34
Negative
553.55
Negative
Market Momentum
-11.24
Negative
57.35
Neutral
61.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FIVESTAR, the sentiment is Neutral. The current price of 532.3 is above the 20-day moving average (MA) of 367.82, above the 50-day MA of 413.93, and below the 200-day MA of 553.55, indicating a neutral trend. The MACD of -11.24 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:FIVESTAR.
Five-Star Business Finance Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | ₹190.25B | 13.98 | ― | ― | 8.01% | -20.87% | |
59 Neutral | ₹124.60B | 14.49 | ― | 0.36% | 20.44% | 13.10% | |
58 Neutral | ₹205.50B | 18.67 | ― | ― | ― | ― | |
57 Neutral | ₹173.42B | 14.60 | ― | 0.26% | 18.54% | 67.80% | |
56 Neutral | ₹197.72B | 20.20 | ― | 0.77% | 0.75% | -90.03% | |
49 Neutral | ₹228.11B | 27.09 | ― | 0.80% | -3.68% | -80.12% |
* Financial Sector Average
IN:FIVESTAR
Five-Star Business Finance Limited
423.00
-291.08
-40.76%
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263.20
40.01
17.93%
IN:PSB
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-10.46%
Five-Star Business Finance Limited Corporate Events
Five-Star Business Finance boosts equity base as top executives convert share warrants
Mar 24, 2026
Five-Star Business Finance has allotted 310,000 equity shares following the conversion of share warrants by two senior executives, including promoter and managing director Lakshmipathy Deenadayalan and joint managing director and CFO Srikanth Gopa...
Five-Star Business Finance Posts Modest Profit Growth Amid Asset Quality Pressures, Cites Improving Collections
Jan 28, 2026
Five-Star Business Finance reported a 16% year-on-year increase in assets under management to ₹12,964 crore as of the quarter ended 31 December 2025, though disbursements grew only 4% in the quarter and declined 18% sequentially. Profit afte...
Five-Star Business Finance Unveils Q3 FY2026 Unaudited Results Investor Presentation
Jan 28, 2026
Five-Star Business Finance Limited has released an investor presentation detailing its unaudited financial results for the quarter and nine months ended December 31, 2025, and filed the disclosure with both the National Stock Exchange of India and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.