Five-Star Business Finance Ltd.
NSE: FIVESTARFive-Star Business Finance Ltd.: A 30-second snapshot
Five-Star Business Finance (FIVESTAR) is an NBFC focused on small-business lending, currently priced at ₹446.25 — 46.1% below its 52-week high and 36.9% lower over the past year. The stock trades below its 200-DMA of ₹507.51 while sitting above the 50-DMA of ₹435.77, with RSI at 44.81. It carries the lowest trailing PE (11.98) among its six-member peer group, alongside a forward PE of 9.1.
P/E
12.0
Forward P/E
9.1
ROE
+16.1%
Debt / Equity
111.11
Profit Margin
+48.5%
Div. Yield
+0.5%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
48/100
News
8 headlines · 0 positive · 0 negative
'It's not the Ritz' — ousted BP chairman defends 5-star hotel stays - The Times
The Times
5-Star Advisors 2026: Wealth Professional honours Canada's top financial leaders - Wealth Professional
Wealth Professional
Five Godrej ACs that Indian buyers are choosing this summer in 2026 - ANI News
ANI News
Seven Northwell Hospitals Earn CMS 5-star Ratings - Yahoo Finance
Yahoo Finance
60 Seconds With Helena Doyle, CEO of 5 Star Villa Holidays Ireland - Business & Finance
Business & Finance
Recent context
- ·No company-specific news has surfaced in the current 8-article window; all retrieved headlines relate to unrelated entities, leaving the recent price action without a clear news catalyst on record.
- ·The 3-month price change of +4.72% and the current position above the 50-DMA (₹435.77) represent a short-term stabilisation after the 12-month decline, though the stock remains well below the 200-DMA.
- ·Analyst coverage stands at 9 analysts with no consensus rating on file for this run; the absence of a recorded mean rating limits visibility into sell-side directional sentiment for the current period.
Strengths
- +Lowest trailing PE in the peer group at 11.98 (peers range from 15.1 to 66.2), with a forward PE of 9.1, indicating earnings multiples have compressed significantly relative to comparable financials.
- +ROE of 16.06% ranks second among six peers (BAJFINANCE leads at 17.91%), exceeding AXISBANK (13.15%), HDFCBANK (13.82%), BAJAJFINSV (14.6%), and HDFCLIFE (11.28%).
- +Profit margin of 48.52% reflects a high spread-to-cost ratio characteristic of focused small-business NBFC models, where underwriting selectivity drives wider net interest margins.
- +Revenue growth of 4.1% over five years and a 9-analyst coverage pool (even without a consensus rating on file) indicate the company retains institutional research attention despite the price drawdown.
Weaknesses
- −FCF has been positive in 0 of the available recorded years; the entire operating profit is absorbed by loan-book disbursements, leaving no free cash cushion for a credit-cycle downturn.
- −Price has declined 36.9% over 12 months and sits 46.1% below the 52-week high, with the stock below the 200-DMA (₹507.51) — a sustained technical deterioration that has persisted across multiple quarters.
- −5-year earnings growth is negative at -3.7%, and ROE has cleared the 15% threshold in only 2 of the last 5 recorded years, signalling inconsistency in returns despite the reported high margin.
- −Quality score of 49 and consistency score of 49 rank FIVESTAR 4th of 6 peers on the quality dimension, while debt trends upward — D/E of 111.1 is rising, increasing balance-sheet sensitivity to funding-cost changes.
Open questions
- ?Does the persistent absence of positive FCF reflect a deliberate high-growth disbursement strategy, or does it indicate structural challenges in cash conversion that could surface during an NBFC credit cycle?
- ?How has the asset quality (GNPA, NNPA) and collection efficiency trended over the past 6 quarters, and does it explain the 46% drawdown from the 52-week high better than macro or sector headwinds?
- ?Given that FIVESTAR trades at the lowest PE among its peer group while delivering the second-highest ROE, what specific risk premium is the market pricing in — credit concentration, regulatory exposure, or funding-cost vulnerability?
- ?The 5-year earnings growth is -3.7% despite a 48% profit margin: what has driven the earnings decline, and is the forward PE of 9.1 underpinned by a credible earnings recovery path in analyst models?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FIVESTAR | Five-Star Business Finance Ltd.You're viewing | 12.0 | +16.1% | 49 |
| Industry avg | across 5 peers | 31.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.1 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 16.6 | +13.8% | 50 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.8 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 66.2 | +11.3% | 20 |
Technical state
Current price
₹446.25
SMA 50
₹435.77
SMA 200
₹507.51
RSI (14)
44.8 (neutral)
From 52w high
-46.1%
1Y return
-36.9%
3M return
+4.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highPrice is down 36.9% over 12 months and 46.1% below the 52-week high. The stock has traded below the 200-DMA (₹507.51) at ₹446.25 — a gap of approximately 12% — for an extended period, indicating a sustained break of the long-term trend with no confirmed recovery.
- highFCF has been positive in 0 of the available recorded years. With a reported profit margin of 48.52% alongside zero cash conversion, capital deployed into loan disbursements consistently exceeds operating inflows — a pattern that compounds credit-quality and liquidity risk in a stress scenario.
- medium5-year earnings growth is -3.7% and ROE has exceeded 15% in only 2 of the last 5 recorded years, with debt trending higher (D/E of 111.1). Quality score of 49 and consistency score of 49 place FIVESTAR in the lower half of its peer group on both dimensions.
- lowAll 8 recent news items are unrelated to FIVESTAR (e.g. BP chairman controversy, Northwell hospital ratings, Godrej AC reviews). There is no company-specific news signal in the current window, limiting event-driven context.
Cross-section contradictions
- Trailing profit margin of 48.52% is the second-highest in the peer set, yet FCF has been positive in 0 of the available recorded years — while typical of NBFC disbursement cycles, the persistent divergence between reported earnings and cash generation warrants independent assessment of capital quality.
- FIVESTAR trades at a trailing PE of 11.98 — the lowest among six peers whose PEs range from 15.1 to 66.2 — yet the stock is down 36.9% over 12 months, suggesting the valuation de-rating has been more severe than the fundamental deterioration in earnings alone would imply.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days