Five-Star Business Finance Ltd.
NSE: FIVESTARFive-Star Business Finance Ltd.: A 30-second snapshot
Five-Star Business Finance trades at ₹551, up 14.8% over the past 3 months and back above both its 50-DMA (₹499.10) and 200-DMA (₹497.06), though still 19.58% below its price a year ago and 23.51% off its 52-week high. Trailing PE stands at 14.66 (forward PE 11.09), the second-lowest among a six-name financial-sector peer set, alongside a profit margin of 47.8% and a quality score of 52. Mean analyst rating is 1.33 across 9 analysts on a 1-5 scale where lower denotes more constructive.
P/E
14.7
Forward P/E
11.1
ROE
—
Debt / Equity
111.93
Profit Margin
+47.8%
Div. Yield
+0.4%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
61/100
News
8 headlines · 3 positive · 0 negative
Five-Star Business Finance Q1 Results: Earnings Call Recording Released - scanx.trade
scanx.trade
Five-Star Business Finance Publishes Q1 FY27 Unaudited Results in National and Regional Dailies - The Globe and Mail
The Globe and Mail
FIVESTAR: Record disbursements and strong asset quality position the company to exceed growth targets - TradingView
TradingView
Five-Star Business Finance Limited Reports Earnings Results for the First Quarter Ended June 30, 2026 - marketscreener.com
marketscreener.com
Buy Five Star Business Finance for the Target Rs 670 by Motilal Oswal Financial Services Ltd - Investment Guru
Investment Guru
Recent context
- ·Q1 FY27 unaudited results were published in national and regional dailies and discussed on an earnings call recording in late July 2026 (scanx.trade, The Globe and Mail).
- ·A TradingView piece (Jul 27, 2026) cited "record disbursements and strong asset quality" for the June quarter.
- ·Motilal Oswal Financial Services reiterated a "Buy" rating with a ₹670 target price (Investment Guru, Jul 28, 2026).
Strengths
- +Trailing PE of 14.66 (forward PE 11.09) ranks 2nd-lowest among 6 peers, whose PEs range from 13.84 to 59.88.
- +Profit margin of 47.8%, among the higher margins in the peer set.
- +Price has risen 14.8% over the past 3 months and reclaimed both the 50-DMA and 200-DMA.
- +Mean analyst rating of 1.33 across 9 analysts (1-5 scale, lower = more constructive); recent news flow skews positive (3 positive, 5 neutral, 0 negative of 8 items).
Weaknesses
- −FCF has been positive in 0 of the recorded years despite the high reported profit margin - a cash-generation gap worth scrutiny independent of NBFC disbursement dynamics.
- −5-year earnings growth of 1.8% trails 5-year revenue growth of 8%; ROE exceeded 15% in only 2 of the last 5 years and the debt trend is rising (D/E of ~1.12x).
- −Stock remains down 19.58% over 12 months and 23.51% below its 52-week high despite the recent 3-month bounce.
- −Quality score of 52 and consistency score of 49 sit mid-pack, with a qualityScore rank of 3 of 6 within the peer group.
Open questions
- ?Does the persistent absence of positive free cash flow reflect a scaling growth-stage NBFC loan book, or a structural gap between reported earnings and cash generation?
- ?What is driving the divergence between 8% five-year revenue growth and just 1.8% five-year earnings growth - rising costs, credit provisioning, or funding costs?
- ?How does the current rising debt trend compare with FIVESTAR's own historical leverage cycle and with sector norms for NBFC lenders?
- ?Does reclaiming the 50-DMA and 200-DMA after a 23.51% drawdown from the 52-week high represent a durable trend change or a shorter-term bounce within a longer decline?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FIVESTAR | Five-Star Business Finance Ltd.You're viewing | 14.7 | — | 52 |
| Industry avg | across 5 peers | 31.7 | +13.1% | 48 |
| AXISBANK | Axis Bank Ltd. | 13.8 | +13.3% | 70 |
| HDFCBANK | HDFC Bank Ltd. | 16.3 | +13.8% | 66 |
| BAJFINANCE | Bajaj Finance Ltd. | 35.1 | — | 47 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 59.9 | +10.8% | 33 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 33.3 | +14.6% | 23 |
Technical state
Current price
₹551.00
SMA 50
₹499.10
SMA 200
₹497.06
RSI (14)
57.1 (neutral)
From 52w high
-23.5%
1Y return
-19.6%
3M return
+14.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFCF has been positive in 0 of the recorded years despite a 47.8% profit margin. This divergence is common to a growing NBFC lender (loan disbursements are treated as operating outflows), but the persistent gap between reported earnings and cash generation still warrants independent scrutiny of capital quality.
- medium5-year earnings growth of 1.8% trails 5-year revenue growth of 8%, ROE has exceeded 15% in only 2 of the last 5 recorded years, and the debt trend is rising (D/E of ~1.12x). Quality score of 52 and consistency score of 49 sit in the lower-middle of the six-name peer set (qualityScore ranked 3 of 6).
- lowDespite reclaiming both the 50-DMA (₹499.10) and 200-DMA (₹497.06) and gaining 14.8% over the past 3 months, the stock remains down 19.58% over the past 12 months and 23.51% below its 52-week high, reflecting a partial rather than complete technical recovery.
- lowCurrent-period ROE is not populated in the fundamental data (null), even though persistence metrics reference 5 years of ROE history, limiting direct like-for-like ROE comparison against peers (10.80%-14.60%).
Cross-section contradictions
- Reported profit margin of 47.8% is among the higher metrics in the peer set, yet FCF has been positive in 0 of the recorded years - a divergence typical of a disbursement-stage NBFC but one that still merits independent assessment of cash quality.
- Mean analyst rating of 1.33 across 9 analysts (1-5 scale, lower = more constructive) points to broadly favorable sell-side positioning, while the stock is still down 19.58% over the past 12 months and 23.51% below its 52-week high - a gap between sell-side view and realized price action.
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 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 31 Jul 2026 · rotates through NIFTY 500 every ~5 days