HDFC Bank Limited
NSE: HDFCBANK
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Five-Star Business Finance Limited
NSE: FIVESTARFinancial ServicesCredit Services
- Last close
- ₹448.40
- Day change
- −₹23.40 (−4.96%)vs
- Market cap
- ₹14,941 crIndian rupees
- Research updated
- 1 report
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About Five-Star Business Finance
Five-Star Business Finance Limited operates as a financial services company primarily focused on providing secured business loans to small and medium-sized enterprises (SMEs) in India. The company's main objective is to support the growth and development of businesses in urban and semi-urban areas that have limited access to traditional banking facilities. Known for its commitment to financial inclusion, Five-Star Business Finance plays a crucial role in bridging the credit gap faced by underserved businesses. The company offers tailor-made financial products that are designed to meet the diverse needs of SMEs, thereby enabling them to expand, increase efficiency, or stabilize operations. Whether it's working capital, term loans, or other financial products, Five-Star Business Finance ensures flexibility and convenience. The firm's robust risk management practices and strong local market knowledge are vital components of its operations, enhancing its reputation and reliability in the financial services sector. As part of the broader financial ecosystem, Five-Star Business Finance Limited contributes significantly to economic growth by empowering small businesses, which are central to job creation and innovation in the Indian economy.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: FIVESTAR
- Next results
- Chief executive
- Mr. Rangarajan Krishnan
- Employees
- 11,929
- Headquarters
- Chennai, India
- ISIN
- INE128S01021
- Website
- fivestargroup.in
Public research · Report of
Business model & financial foundation
Five-Star (NSE: FIVESTAR), NBFC - secured small-ticket business loans (micro-LAP): revenue of ₹3,246 crore in FY26 (+13.3% on FY25) and net profit of ₹1,099 crore.
- Revenue, FY26 (₹ crore)
- 3,246
- standalone
- Revenue growth, FY26
- +13.3%
- on FY25
- Net profit, FY26 (₹ crore)
- 1,099
- to owners
- Return on equity, FY26
- 16.1%
- on average equity
- Market capitalisation (₹ crore)
- 16,218
- at the close of 17 Oct 2026
Company profile
Five-Star Business Finance is a Chennai-based NBFC lending small-ticket (Rs 3-10 lakh, average ~Rs 5 lakh) loans secured by self-occupied residential property to micro-entrepreneurs and self-employed borrowers in semi-urban and rural South and Central India. AUM was Rs 13,722 crore at June 2026 across 856 branches and about 5 lakh loans, earning a yield of ~22.5% against a cost of borrowing of ~8.8%. It is lightly levered (debt/equity 1.03x) with ROA around 8% of average AUM and ROE around 15%.
| Item | Value |
|---|---|
| Legal name | Five-Star Business Finance Limited |
| Exchange and ticker | NSE: FIVESTAR; BSE: 543663 |
| ISIN | INE128S01021 |
| CIN | L65991TN1984PLC010844 |
| Sector | Financial Services |
| Industry | NBFC - secured small-ticket business loans (micro-LAP) |
| Headquarters | Chennai, India |
| Fiscal year end | March |
| Reporting basis and unit | standalone, in ₹ crore |
| Auditor | Deloitte Haskins & Sells, Chartered Accountants |
| Market capitalisation | ₹16,218 crore (17 Oct 2026) |
| Shares outstanding | 29.52 crore shares (FY26) |
| Price | ₹506.1 (close, 17 Oct 2026) |
| 52-week range | ₹338.1 - ₹666.0 (to 17 Oct 2026) |
| Website | https://fivestargroup.in |
Corporate structure and shareholding
No subsidiary is recorded.
Single listed entity; no subsidiaries, associates or JVs per FY25 annual report. Promoter group (D. Lakshmipathy family) held 18.61% at Jun 2026.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 18.56% | 18.61% | 18.61% | |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 52.94% | 48.47% | 43.97% | |
| Domestic institutions | 14.73% | 17.58% | 22.35% | |
| of which mutual funds | 10.42% | 13.05% | 17.82% | |
| Retail | 7.41% | 8.63% | 8.15% | |
| Other | 6.36% | 6.70% | 6.92% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Five-Star lends small-ticket loans (average about Rs5 lakh, range Rs3-10 lakh) secured on self-occupied residential property to micro-entrepreneurs and self-employed borrowers in semi-urban South and Central India. It earns a portfolio yield of 22.46% against a book cost of borrowing of 8.80% (Q1FY27), a spread of 13.66%. Customer AUM was Rs13,721.8cr at June 2026 across 856 branches and 14,497 employees. The company is a standalone entity with no subsidiaries. It controls underwriting, collections (in-house, now split from sourcing) and pricing (fixed-rate book, price-inelastic customers); it does not control borrower leverage built by unsecured and microfinance lenders, which caused the FY26 stress. Capital is ample: debt/equity 1.03x and CRAR 51.89% (FY26), so ROE (14.46% Q1FY27) is constrained by under-leverage, not by profitability (ROA on AUM 8.11%).
| Peer | Why the dossier compares them |
|---|---|
| Aptus Value Housing Finance (APTUS) | South India small-ticket secured lender (housing + small business LAP) to self-employed, similar customer and geography |
| SBFC Finance (SBFC) | Secured MSME loans (small-ticket LAP) to self-employed, closest product peer |
| Aavas Financiers (AAVAS) | Affordable housing and small-ticket LAP lender to informal-income customers |
| Home First Finance (HOMEFIRST) | Affordable housing financier, high-growth small-ticket secured retail lender |
| India Shelter Finance (INDIASHLTR) | Affordable housing + small LAP to self-employed in tier 2-4 towns |
| Cholamandalam Investment and Finance (CHOLAFIN) | |
| Shriram Finance (SHRIRAMFIN) | Large NBFC with MSME lending exposure to similar semi-urban self-employed borrowers |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total income (company revenue basis) | 1,233 | 1,470 | 2,195 | 2,866 | 3,246 |
| Cost of revenue (vendor classification) * | 536.7 | 462.1 | 807.9 | 1,189 | 1,216 |
| Other operating costs (vendor classification) * | 80.7 | 79.0 | 144.4 | 160.6 | 152.5 |
| EBITDA (vendor classification) * | 663.6 | 905.5 | 1,126 | 1,522 | 1,735 |
| EBIT * | 626.7 | 891.8 | 1,148 | 1,452 | 1,541 |
| Interest expense (detailed P&L; historical lease conflict) | 2.20 | 87.1 | 468.5 | 668.0 | 737.2 |
| Profit before tax | 604.2 | 804.7 | 1,116 | 1,431 | 1,463 |
| Total tax expense | 150.7 | 201.2 | 280.0 | 358.1 | 364.1 |
| Standalone profit after tax | 453.5 | 603.5 | 835.9 | 1,073 | 1,099 |
| Diluted EPS (₹) | 15.57 | 20.49 | 28.39 | 36.50 | 37.25 |
| Interest income (detailed presentation) | 2,117 | 2,767 | 3,135 | ||
| Company net total income / NII | 1,727 | 2,198 | 2,509 | ||
| Operating expenses including depreciation | 555.3 | 678.5 | 829.7 | ||
| Credit cost / loan losses and provisions | 55.4 | 89.0 | 216.3 | ||
| Pre-provision operating profit | 1,171 | 1,520 | 1,679 | ||
| Employee benefits expense | 428.6 | 521.1 | 629.9 | ||
| Other expenses (statutory detailed expense line) | 102.1 | 127.0 | 162.7 | ||
| Depreciation and amortisation (within opex) | 24.6 | 30.4 | 37.0 | ||
| Lease interest (historic statutory finance-cost component) | 3.18 | 4.49 | n.r. | ||
| Historic finance cost excluding lease (supplemental) | 465.3 | 663.5 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total standalone equity | 3,710 | 4,340 | 5,196 | 6,305 | 7,380 |
| Borrowings including debt securities, excluding leases | 2,559 | 4,247 | 6,316 | 7,922 | 8,200 |
| Cash and cash equivalents (excludes other bank balances) | 613.2 | 1,340 | 1,534 | 1,497 | 1,618 |
| Trade payables * | 13.0 | 20.1 | 25.4 | 26.7 | 31.8 |
| Net property, plant and equipment * | 19.8 | 28.5 | 34.1 | 55.1 | 56.1 |
| Capital work in progress * | 62.4 | 72.1 | |||
| Total assets * | 6,343 | 8,703 | 11,689 | 14,421 | 15,790 |
| Gross customer loan portfolio (excludes ICDs) | 9,641 | 11,877 | 13,225 | ||
| Net carrying loans including inter-corporate deposits | 9,685 | 11,687 | 12,985 | ||
| Debt securities | 295.4 | 781.8 | 783.2 | ||
| Borrowings other than debt securities | 6,020 | 7,140 | 7,417 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations * | -1,047 | -2,173 | -3,379 | -2,779 | -264.3 |
| Free cash flow (vendor definition) * | -285.8 | -1,135 | -2,145 | -1,128 | -289.9 |
| Dividends paid (the provider's sign: an outflow is negative) * | -58.9 | ||||
| Capital expenditure (the provider's sign: an outflow is negative) * | -8.62 | -12.1 | -22.3 | -82.7 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Actual closing equity shares outstanding | 29.14 | 29.14 | 29.24 | 29.44 | 29.52 |
| Weighted average diluted shares (EPS denominator) | 29.44 | 29.38 | n.r. |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Total income (company revenue basis) | 705.8 | 731.1 | 759.7 | 791.2 | 806.5 | 822.2 | 826.1 | 838.7 |
| Cost of revenue (vendor classification) * | 348.3 | 351.9 | 360.4 | |||||
| Other operating costs (vendor classification) * | 38.5 | 46.6 | 45.4 | |||||
| EBITDA (vendor classification) * | 470.2 | 464.2 | 469.5 | |||||
| EBIT * | 411.1 | 401.1 | 406.2 | |||||
| Profit before tax | 358.2 | 365.1 | 371.1 | 355.0 | 381.9 | 368.8 | 357.1 | 362.0 |
| Total tax expense | 90.3 | 91.3 | 91.9 | 88.6 | 95.8 | 91.8 | 87.9 | 90.5 |
| Standalone profit after tax | 267.9 | 273.9 | 279.1 | 266.3 | 286.1 | 277.0 | 269.3 | 271.4 |
| Diluted EPS (₹) | 9.07 | 9.35 | 9.55 | 9.02 | 9.69 | 9.38 | 9.16 | 9.18 |
| Interest income (detailed presentation) | 679.3 | 711.2 | 735.3 | 765.5 | 773.1 | 797.4 | 797.5 | 809.6 |
| Interest expense (detailed P&L; historical lease conflict) | 163.1 | 171.4 | 175.3 | 187.3 | 180.0 | 188.5 | 181.4 | 171.5 |
| Company net total income / NII | 542.7 | 559.7 | 584.4 | 603.9 | 626.5 | 633.7 | 644.7 | 667.2 |
| Operating expenses including depreciation | 162.7 | 171.3 | 187.9 | 201.1 | 193.6 | 207.8 | 227.1 | 243.5 |
| Credit cost / loan losses and provisions | 21.8 | 23.3 | 25.4 | 47.8 | 51.0 | 57.1 | 60.4 | 61.8 |
| Pre-provision operating profit | 380.0 | 388.4 | 396.5 | 402.8 | 432.9 | 425.9 | 417.6 | 423.7 |
| Employee benefits expense | 124.8 | 129.2 | 144.2 | 156.1 | 143.6 | 159.7 | 170.5 | 188.9 |
| Other expenses (statutory detailed expense line) | 31.2 | 33.7 | 34.8 | 36.9 | 40.8 | 38.5 | 46.6 | 45.4 |
| Depreciation and amortisation (within opex) | 6.67 | 8.34 | 8.99 | 8.22 | 9.11 | 9.61 | 10.1 | 9.21 |
Standalone, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 21.6% | 19.2% | 49.4% | 30.6% | 13.3% |
| Net margin | 36.8% | 41.1% | 38.1% | 37.4% | 33.9% |
| Return on equity | 15.0% | 15.0% | 17.5% | 18.7% | 16.1% |
| Return on assets | 7.5% | 8.0% | 8.2% | 8.2% | 7.3% |
| Dividend payout | 5.4% | ||||
| EPS, diluted (₹) | 15.57 | 20.49 | 28.39 | 36.50 | 37.25 |
| Book value per share (₹) | 127.3 | 148.9 | 177.7 | 214.1 | 250.0 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 17 Oct 2026); market data at the close of 17 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Five-Star Business Finance includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Five-Star Business Finance
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 17 Oct 2026; page updated 25 Oct 2026.
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