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Five-Star Business Finance

FIVESTAR
Small Cap
(%) 1D
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1D1W1M3M6M1YMAX

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Five-Star Business Finance Share price and Fundamental Analysis

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Five-Star Business Finance Limited was incorporated as a Private Limited Company under the name, 'Five-Star Business Credits Private Limited' at Chennai, Tamil Nadu dated May 7, 1984. The Company converted from a Private Limited to a Public Limited and consequently, name of the Company was changed from Five-Star Business Credits Private Limited' to Five-Star Business Credits Limited' on October 3, 1988. Subsequently, Company changed its name of to Five-Star Business Finance Limited' pursuant to a Special Resolution passed by the Shareholders at the EGM held on April 12, 2016, and a fresh Certificate of Incorporation consequent upon change of name was issued by the RoC on May 13, 2016. The Company is registered with the RBI to carry on the business of non-banking financial institution without accepting public deposits.
Company Incorporation1984
ChairmanDEENADAYALAN LAKSHMIPATHY
Head QuartersNA
Previous NameNA

Key Metrics

Market Cap (Cr)
20,007
PE Ratio
18.65
Industry P/E
28.77
PEG Ratio
0.68
ROE
17.01%
ROCE
14.73%
ROA
7.44%
Total Debt (Cr)
Debt to Equity
Dividend Yield
0%
EPS
36.43
Book Value & P/B
214.13 x 3.17
Face Value
1
Outstanding Shares(Cr)
29.44
Current Ratio
EV to Sales
9.05

Included In

+More

Stock Returns

1 Week-0.28%
1 Month-9.68%
6 Months+6.11%
1 Year-8.32%
3 Years+38.32%
5 Years+38.32%

CAGR

1 Year CAGR

Revenue Growth

+129.84%

Net Profit Growth

+184.53%

Financing Profit Growth

+125.38%

Dividend Growth

N/A

Stock Returns CAGR

-8.12%
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Mar 25

Promoters : 21.47%

FIIs : 58.75%

DIIs : 9.09%

Public : 10.68%

Promoter
FII/FPI
DII
Public
Promoter Pledge stands at 0.0% of holding in March 2025 Qtr
FII Shareholding Increased by 1.0% to 58.75% in March 2025 Qtr
Promoter Shareholding Decreased by 0.07% to 21.47% in March 2025 Qtr
DII Shareholding Decreased by 1.02% to 9.09% in March 2025 Qtr

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ROE

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ROCE

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ROA

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Dividend History

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Five-Star Business Finance Management and History

Company Management

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Company History

Five-Star Business Finance Limited was incorporated as a Private Limited Company under the name, 'Five-Star Business Credits Private Limited' at Chennai, Tamil Nadu dated May 7, 1984. The Company converted from a Private Limited to a Public Limited and consequently, name of the Company was changed from Five-Star Business Credits Private Limited' to Five-Star Business Credits Limited' on October 3, 1988. Subsequently, Company changed its name of to Five-Star Business Finance Limited' pursuant to a Special Resolution passed by the Shareholders at the EGM held on April 12, 2016, and a fresh Certificate of Incorporation consequent upon change of name was issued by the RoC on May 13, 2016. The Company is registered with the RBI to carry on the business of non-banking financial institution without accepting public deposits.

The Company is an NBFC-ND-SI providing secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions. Headquartered in Chennai, Tamil Nadu with a strong presence in South India, all of its loans are secured by the borrowers' property, predominantly being SORP. The Company is primarily engaged in providing loans for business purposes, house renovation / extension purposes and other mortgage purposes.

The Company had an extensive network of 311 branches, as of June 30, 2022 with Tamil Nadu, Andhra Pradesh, Telangana and Karnataka being the key states. It started operations in Chennai, Tamil Nadu and has increased scale of operations through growth in number of branches across geographies where there is substantial demand for their offering. It has implemented a comprehensive and robust credit assessment, risk management and collections framework to identify, monitor and manage risks inherent in their line of business.

Apart from this, the Company secure financing from diversified sources of capital, including term loans; proceeds from loans securitized; proceeds from the issuance of NCDs; issuance of principal protected market linked debentures; and proceeds from loans assigned from banks, financial institutions, mutual funds, and other domestic and international development financial institutions, as applicable to meet capital requirements.

In 2008, the Company rearranged portfolio for advances by moving focus to financing the immovable properties.

In 2017, it expanded the geographical presence to Telangana.

The Company had 1 wholly owned subsidiary, Five-Star Housing Finance Private Limited upto the financial year 2018-2019, which was merged with itself in financial year 2019-2020.

During the FY ended March 31, 2023, the Company completed Initial Public Offer (IPO / Issue) of the 33,512,901 Equity Shares of Face Value of Re 1 each at a price of Rs 474 per equity share, including premium of Rs 473 per equity share aggregating to Rs 1588.51 Crores through Offer for Sale of Equity Shares by TPG Asia VII SF Pte. Ltd, Matrix Partners India Investment Holdings II LLC, Matrix Partners India Investments II Extension LLC, SCI Investments V and Norwest Venture Partners X - Mauritius, and as a result, Shares of the Company were listed in National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) w.e.f November 21, 2022.

The Company's branch network increased to 373 by adding 73 new branches as on March 31, 2023.

Five-Star Business Finance Share Price

Five-Star Business Finance share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.

Five-Star Business Finance Market Cap

Market capitalization of Five-Star Business Finance indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Five-Star Business Finance is valued compared to its competitors.

Five-Star Business Finance PE Ratio

Five-Star Business Finance PE ratio helps investors understand what is the market value of each stock compared to Five-Star Business Finance 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.

Five-Star Business Finance PEG Ratio

The PEG ratio of Five-Star Business Finance evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.

Five-Star Business Finance ROE (Return on Equity)

Return on Equity (ROE) measures how effectively Five-Star Business Finance generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.

Five-Star Business Finance ROCE (Return on Capital Employed)

Return on Capital Employed (ROCE) evaluates the profitability of Five-Star Business Finance in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.

Five-Star Business Finance Total Debt

Total debt of Five-Star Business Finance shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.

Five-Star Business Finance Debt to Equity Ratio

The Debt-to-Equity (DE) ratio of Five-Star Business Finance compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.

Five-Star Business Finance CAGR (Compound Annual Growth Rate)

CAGR shows the consistent growth rate of Five-Star Business Finance over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.

Five-Star Business Finance Technical Analysis

Technical analysis of Five-Star Business Finance helps investors get an insight into when they can enter or exit the stock. Key components of Five-Star Business Finance Technical Analysis include:

Support Levels (S1, S2, S3)

There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.

Resistance Levels (R1, R2, R3)

There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Five-Star Business Finance shares often struggle to rise above due to selling pressure.

Five-Star Business Finance Dividends

Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Five-Star Business Finance ’s financial health and profitability.

Five-Star Business Finance Bonus Shares

Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.

Five-Star Business Finance Stock Split

Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.

Five-Star Business Finance Financials

The financials of Five-Star Business Finance provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.

Five-Star Business Finance Profit and Loss Statements

The profit and loss statement of Five-Star Business Finance highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Five-Star Business Finance .

Five-Star Business Finance Balance Sheet

The balance sheet presents a snapshot of Five-Star Business Finance ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.

Five-Star Business Finance Cashflow Statements

Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.

Five-Star Business Finance Net Interest Margin (NIM)

Five-Star Business Finance Net Interest Margin (NIM) tells about the profitability earned by all NBFCs and financial institutions. It represents the income generated by the bank from the difference between the interest earned on loans and the interest paid on public deposits. Net Interest Margin (NIM) is a metric that monitors the profitability generated from a bank's lending activities.

Five-Star Business Finance Non-Performing Assets (NPA) Ratio

Non-Performing Assets (NPA) indicate the ratio of a bank's loans that are classified as non-performing. A lower NPA ratio reflects stronger asset quality and more effective risk management.

Five-Star Business Finance Capital Adequacy Ratio (CAR)

Capital Adequacy Ratio (CAR) is a metric to measure the bank's ability to absorb losses and still remain financially stable. A higher CAR shows that the bank is financially sound and can absorb potential losses.

Five-Star Business Finance Gross NPA

Gross NPA is the percentage of total non-performing loans before provisioning, while net NPA is the percentage after provisioning. Lower gross and net NPA ratios indicate better loan quality.

Five-Star Business Finance Net NPA Ratio

Net NPA is the actual losses a bank has incurred due to NPA accounts. Lower the NPA, better the banks can maintain stable income from interest on loans.

Five-Star Business Finance CASA Ratio

CASA ratio tells how much of a bank's total deposits are in both current and savings accounts.

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