Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 14 Oct
Source: Bse
Five-Star Business Finance Limited (FIVESTAR)
Small CapFinancial Services stocks · Small cap · NSE
Five-Star Business Finance Limited is an NBFC providing secured financial solutions to small business customers and self-employed individuals with informal incomes, largely cut-off from the formal lending ecosystem. All loans are secured against borrower property, typically self-occupied residential property. The company operates 844 branches across 11 states/UTs.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals16 Oct 2026 · screener
Latest result26 Jul, 12:41 am IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags03 May 2026
Coverage11/14 · 79%
Valuation2026-07-20 · Rf 6.8% · Financial Services P/E 17.0 (n=243)
Technical timing lens
Trend score and candlestick chart
45NeutralSMA20 -3.0% / mo · MACD −
Stock trend: 45
Sector RS: 44
Sector 3M: -5.8% vs Nifty 500 -5.6%
Financial Services FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
FIVESTARD candles · FIT view+1.7%Latest close ₹501.55 on 2026-10-19
Bar
-0.3%
RSI
43
MACD hist
-0.18
52W pos
50%
2026-10-19O ₹503.00H ₹511.00L ₹496.70C ₹501.55Vol 3.3L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
FIVESTARNifty Financial ServicesNifty 500
- FIVESTAR
- -12.1%
- Nifty 500
- -5.6%
- Nifty Financial Services
- -6.0%
- Vs Nifty 500
- -6.5 pp
Chart stats
19 Oct 2026- From 52W high
- -24.7%
- 52W range position
- 50%
- ATR (14)
- 3.1%
- Volume vs 20D
- 0.53x
- Avg traded value
- ₹30.9 Cr
- 20D price channel
- ₹491 - ₹552
₹666
₹338.2 - ₹666
₹15.8
Latest completed session
20-session average
36.4% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · OVERVALUED27
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad20
Revenue +5.3% · PAT +1.9% YoY
Technical
Neutral45
Price trend and sector-relative-strength timing.
Valuation
Legacy model-200.3%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence60
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 20/100Rev +5% YoY · PAT +2% YoY
Filed 25 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹829 Cr | +5.3% | +1.5% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹271 Cr | +1.9% | +0.7% |
| PAT margin | 32.7% | -111 bps | -24 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 95.50
- P/B
- —
- EV/EBITDA
- 3977.75
- Market Cap
- 14956.00Cr
Profitability
- ROE
- 16.00%
- ROCE
- 17.00%
- ROA
- 6.68%
- Dividend Y
- 0.39%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 30.00%
- EPS 3Y
- 37.50%
Balance Sheet
- Debt/Equity
- 0.70
- Interest Coverage
- —
- Altman Z
- 7.01
- Book Value
- —
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -951.00 Cr
- EPS TTM
- 6.55
Shareholding
- Promoter Hold
- 18.61%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 52%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 829+1.5% vs prev
Net Profit
₹ CrLatest: 271+0.7% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 43.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~3.1% over last month) — short-term momentum negative.
- RSI(14) at 43 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 25% off 52W high · 48% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
55
RS percentile
Stage 2 UptrendEstablished S2
1M return
-6.9%
3M return
-12.1%
6M return
+0.1%
1Y return
-6.6%
RS 1D
+1
RS 20D
-16
Sector rank
#9
Industry rank
#20
Stage evidence
- Price is 2.1% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +3.3%.
50-DMA
price below
200-DMA
price above
S2 entered
17 Aug 2026
S2 age
44 trading sessions
Sector
neutral
Industry
lagging
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 101.29+0.12%
RS vs Nifty 500101
Valuation & peers
U-Score 27 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 27 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation0/30
Growth11/25
Quality11/20
Balance Sheet4/15
Cash Flow0/10
Piotroski
4/9 (+1)
Penalties
0
Raw sum
27
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
27/100 · legacy band OVERVALUED
Positive drivers
- Quality contributes 11/20 to the score.
- Growth contributes 11/25 to the score.
- Balance sheet contributes 4/15 to the score.
Main drags
- Fair-value margin of safety is negative at -200.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
Sector valuation model
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Primary lens
P/B adjusted for ROA/ROE and leverage quality.
Secondary checks
AUM growth, spreads, credit cost, liquidity and ALM risk.
Main risk check
Fast growth with weak asset quality deserves a discount.
PE
95.5
PB
—
EV/EBITDA
3977.8
ROE
16.0%
ROCE
17.0%
FCF Yield
—
Debt/Equity
0.7
MoS
-200.3%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
27
Previous: 27
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-200.3%
Previous: -200.3%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
47
47
47
47
47
47
47
27
27
27
27
27
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
—
Growth-justified P/E
25.5
Growth-justified Value
₹167.03
-200.3% MoS
PEG
3.98
Comparable companies
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
CGCL
Small
Capri Global Capital Limited
NBFC
match 165
35
21.1
16.5%
+18%
WATCHLIST
CREDITACC
Small
CREDITACCESS GRAMEEN LIMITED
NBFC
match 140
33
16.3
10.5%
+36%
WATCHLIST
APTUS
Small
Aptus Value Housing Finance India Limited
NBFC
match 140
50
11.3
20.1%
+57%
FAIR VALUE
JMFINANCIL
Small
JM Financial Limited
NBFC
match 139
58
11.0
11.9%
+58%
FAIR VALUE
ASHIKAG
Small
Ashika Global Securities Limited
NBFC
match 136
28
38.4
5.6%
-81%
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-06-06T07:12:47.869Z
Management commentary snapshot
Q4FY26 PAT declined 4% YoY and 3% QoQ, while AUM grew 11% YoY and 2% QoQ. Asset quality deteriorated with GNPA rising to 3.37% (vs 1.79% YoY) and credit cost surging 138% YoY.
Despite management's claim that 'the worst is behind us' and strong collection efficiency, the significant deterioration in asset quality metrics (GNPA, NNPA, credit cost) and flat to declining profitability (PAT, RoE) in Q4FY26 raises concerns. The company's ability to achieve its ambitious AUM growth target while simultaneously improving asset quality and profitability remains a key challenge.
Current business mix
AUM by State (FY26)
Latest issuer-disclosed distribution across 7 reported categories.
Andhra Pradesh36.0%
Tamil Nadu28.0%
Telangana19.0%
Madhya Pradesh9.0%
Karnataka5.0%
Maharashtra2.0%
Others1.0%
Growth engines
AUM Growth Target
Management is 'geared to get back on the track of growth' and 'well-poised to achieve AUM growth of around 20% for FY27 and thereafter'.
Robust Credit Underwriting & Collections
Company aims for strong, sustainable growth, quality, and profitability through 'robust credit underwriting, strong collections, and proactive risk management'.
Technology and AI Adoption
Growth and risk management will be 'backed by use of appropriate technology and AI', including ML models for risk scoring and GenAI for document processing and voice bots.
Capacity and execution
Branch Network Expansion
9 branches were opened during Q4FY26, bringing the total to 844 branches.
Tailwinds
Strong Collection Performance
Q4FY26 unique customer collection efficiency (excluding NPA loans) was 98.1%, 'one of the best in the history of the Company'.
Reduced Slippage Ratio
Slippage ratio dropped from 1.09% in Q3FY26 to 0.70% in Q4FY26, helping contain NPA levels.
Diversified and Cost-Effective Funding
Company aims for growth supported by a 'diversified and cost-effective funding profile'. Book COF dropped ~70 bps during FY26.
Risk radar
Deteriorating Asset Quality
GNPA increased to 3.37% in Q4FY26 from 1.79% in Q4FY25. NNPA rose to 2.00% from 0.88% over the same period.
Surging Credit Costs
Credit cost to average AUM increased significantly to 1.88% in Q4FY26 from 0.90% in Q4FY25, impacting profitability.
Profitability Decline
PAT declined 4% YoY and 3% QoQ in Q4FY26. Return on Equity (RoE) for FY26 was 16.06% vs 18.68% in FY25.
Past Senior Management Exits
Management noted 'Senior Management exit that we saw during the year has had no impact on our performance', indicating past instability.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
For an NBFC, both year-on-year (YoY) and quarter-on-quarter (QoQ) comparisons are crucial. YoY provides a view on overall growth and seasonal trends, while QoQ highlights sequential momentum in disbursements, asset quality, and profitability, which are vital for assessing operational performance and credit cycle shifts.
Sector KPIs management disclosed
Loan Portfolio (AUM)
Q4FY26 AUM was ₹132,246 Mn, up 11% YoY and 2% QoQ. FY26 AUM grew 11% YoY.
Loan Disbursement
Q4FY26 disbursements were ₹12,133 Mn, down 17% YoY and up 24% QoQ. FY26 disbursements were ₹46,757 Mn, down 6% YoY.
Net Interest Margin (NIM)
Q4FY26 NIM was 20.07% (vs 20.72% YoY, 19.57% QoQ). FY26 NIM was 19.86% (vs 20.46% YoY).
Cost of Borrowing
Q4FY26 cost of borrowing was 8.95% (vs 9.63% YoY, 9.12% QoQ). FY26 cost of borrowing was 9.21% (vs 9.64% YoY).
Management forward view
Optimistic Outlook
Management believes 'the worst is behind us and there is only one direction that we will be moving in, in the coming years'.
FY27 AUM Growth Target
Company is 'well-poised to achieve AUM growth of around 20% for FY27 and thereafter'.
Focus on Sustainable Growth
Management will 'aim at achieving strong yet sustainable growth, quality and profitability'.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth | 11% YoY (FY26) | Progress towards 20% AUM growth target for FY27. |
| Gross NPA | 3.37% (Q4FY26) | Stabilization or reduction in GNPA and slippage ratios, indicating asset quality improvement. |
| Credit Cost | 1.88% (Q4FY26) | Moderation in credit costs, which have significantly impacted profitability. |
| Net Interest Margin (NIM) | 20.07% (Q4FY26) | Maintenance or improvement in NIM, supported by stable yields and declining cost of funds. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
60Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 28th percentile of the scored universe and 45th percentile within Financial Services. Main check: cash conversion is weak at 28/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
84 docs text-extracted · 29 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
28th percentile
overall median 67 · Financial Services: 45th pctile, median 62 · Small: 32nd pctile, median 66
Evidence depth
Financial-only
84 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
66
acceptable · holding, pledge, alignment
Cash flow
28
weak · profit to cash conversion
Balance sheet
73
acceptable · leverage and solvency
Discipline
68
acceptable · capital discipline
Results
79
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-951 Cr.
- ▸Promoter holding is only 18.6%.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Five-Star Business Finance Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 13 Oct - Intimation of allotment of 2920 equity shares pursuant to Employee Stock Option
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 29 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 22 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 18 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 18 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 18 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 18 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 8 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 8 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 8 Sep - Intimation of Schedule of Investor/Analyst meetings under the SEBI (LODR), Regulations 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 12 Aug - Intimation of Allotment of 650 equity shares pursuant to exercise of Employee Stock Options
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.