Established in 1984, Five-Star Business Finance Limited has emerged as a distinctive financial institution, marked by consistent profit growth and a mission to empower micro-entrepreneurs and self-employed individuals. As startups and small businesses continue to drive innovation and economic growth, the company’s role in providing secured business loans across South India remains crucial.

In this article, we delve into the intricacies of Five-Star Business Finance, exploring its unique qualities and financial metrics. we’ll also explore the unique qualities of Five-Star Business Finance and delve into whether its share price is poised to cross ₹1,000 by 2030.

Join us on a journey to uncover what the future may hold for this remarkable financial institution and the role it plays in shaping the entrepreneurial landscape.

About Five-Star Business Finance

In 1984, they began their journey as a well-known financial company in South India. Their mission is to assist people with secure business loans. They work closely with a diverse group, including small entrepreneur and self-employed people. Their growth has been steady, impacting urban & rural areas significantly. Many of their clients run essential cash-based businesses, typically earning ₹25,000 to ₹40,000 monthly. To secure a loan, they provide collateral, such as land or buildings valued at around ₹1 million. They also encourage family members to join the loan process, fostering shared responsibility.

They take pride in their financial stability and extensive reach. As of June 30, 2022, they’ve successfully secured funding from various sources, including private banks, public banks, and other financial institutions like mutual funds. Their total borrowings amount to ₹2,520.32 crores, demonstrating their solid financial footing. Their commitment to maintaining financial strength is evident in their consistently low non-performing loans, which were at 1.4%, 1%, and 1.1% in FY20 – FY22.

Excitingly, they’re preparing for an Initial Public Offering (IPO) with the goal of raising ₹1,960 crores. This IPO is unique as it’s entirely an offer for sale by their dedicated promoters. It underscores their commitment to transparency and responsible financial practices. As they move ahead, their mission remains unchanged – to aid micro-entrepreneurs and self-employed individuals in South India in achieving financial growth and prosperity. They’ll expand their reach to positively impact even more lives.

Five-Star Business Finance share price target

Five Star Business Q1 Fy2024 Key Points And Summary:

  • AUM Soars: The company’s Assets Under Management (AUM) surged impressively, growing by 43% YoY and 10% QoQ, reaching INR 7,583 crores.
  • Strong Disbursements: Disbursements performed robustly, with a substantial 99% YoY increase and exceeding the previous quarter’s figures by 2% QoQ.
  • Profitability Rises: Profit after tax (PAT) exhibited healthy growth, rising by 32% YoY and a noteworthy 9% QoQ, indicating strong financial performance.
  • Cost Efficiency: Borrowing costs were effectively managed, reducing to 9.80%, while the incremental borrowing cost remained attractive at 9.18%, enhancing financial efficiency.
  • Asset Quality Focus: The company’s dedication to preserving asset quality is evident through a high Provision Coverage Ratio, emphasizing its commitment to managing credit risk and safeguarding its lending portfolio.
  • Steady Growth Path: The company’s significant growth in AUM, disbursements, and profitability, coupled with efficient cost management and a focus on asset quality, underscores its consistent and sustainable growth trajectory within the financial sector.
  • Robust Loan Portfolio: With ₹75,833 Mn (INR 7,583 crores) in loans, the company has seen impressive growth, up by 43% YoY and a notable 10% QoQ.

Five Star Finance Shareholding Pattern Analysis

The shareholding pattern for the company indicates the ownership distribution among different categories of investors. Here’s an analysis of the quarterly and yearly changes as well as the recent trends:

  • Promoters: The promoters’ stake decreased slightly from 34.87% to 34.39% during this quarter, indicating a marginal reduction in their ownership.
  • FIIs (Foreign Institutional Investors): FIIs increased their ownership significantly, from 6.98% to 8.74%, indicating a growing interest from foreign investors in the company.
  • DIIs (Domestic Institutional Investors): DIIs slightly reduced their stake, from 5.05% to 4.71%, suggesting a minor adjustment in their holdings.
  • Public: The public’s ownership remained the largest segment, with a share of 53.10% decreasing slightly to 52.15%, still maintaining the majority of the company’s shares.

The recent trend in shareholding shows a relatively stable ownership pattern among various categories of investors. The number of shareholders has increased from 26,481 to 30,655, indicating growing interest and participation in the company’s shares. The increase in FII ownership over the year reflects growing international interest in the company’s stocks.

Five-Star Business Share Price Target 2023 To 2030

Five-Star Business Share Price Target 2023

When Maximum Price Minimum Price
November 2023 ₹824.35 ₹691.23
December 2023 ₹827.26 ₹692.06

The highest price expected for Five Star Business to be reached during November and December is ₹827.26, while the lowest is expected to be ₹691.23.

Five-Star Business Share Price Target 2024

When Maximum Price Minimum Price
January 2024 ₹781.90 ₹636.43
February 2024 ₹756.84 ₹649.42
March 2024 ₹762.08 ₹662.68
April 2024 ₹739.88 ₹643.38
May 2024 ₹728.95 ₹633.87
June 2024 ₹755.19 ₹656.69
July 2024 ₹747.64 ₹650.12
August 2024 ₹777.54 ₹676.12
September 2024 ₹808.64 ₹703.17
October 2024 ₹792.79 ₹689.38
November 2024 ₹816.57 ₹710.06
December 2024 ₹836.99 ₹727.81

In the year 2024, the FIve Star Finances business stock is expected to exhibit varying price levels, with the highest expected to be recorded at ₹836.99 and the lowest expected to be at ₹636.43.

  • Highest Price: It is anticipated that the stock will reach its highest price point in December 2024 at ₹836.99.
  • Lowest Price: The lowest price for the stock is expected to be observed in January 2024 at ₹636.43.

Five-Star Business Share Price Target 2025

when Maximum Price Minimum Price
January 2025 ₹853.73 ₹656.71
February 2025 ₹875.62 ₹673.55
March 2025 ₹909.77 ₹699.82
April 2025 ₹891.93 ₹686.10
May 2025 ₹865.95 ₹666.11
June 2025 ₹904.92 ₹696.09
July 2025 ₹887.17 ₹682.44
August 2025 ₹914.61 ₹703.55
September 2025 ₹946.62 ₹728.17
October 2025 ₹971.24 ₹747.10
November 2025 ₹995.52 ₹765.78
December 2025 ₹1,020.40 ₹784.93

Throughout the year 2025, the Five Star business stock is expected to display notable price fluctuations, with its maximum highest price reaching in December 2025.

  • Peak Price: The stock is expected to hit its highest point in December 2025, reaching a maximum price of ₹1,020.40.
  • Lowest Point: Conversely, the lowest price is expected to occur in January 2025, standing at ₹656.71.

Five-Star Business Share Price Target 2026 To 2030

Year Maximum Price Minimum Price
2026 ₹1,071.42 ₹750.00
2027 ₹1,178.57 ₹825.00
2028 ₹1,649.99 ₹825.00
2029 ₹1,428.57 ₹714.28
2030 ₹1,857.14 ₹1,300.00

Over the span of five years, from 2026 to 2030, the Five Star Business stock’s price is expected to demonstrate significant variations, with both maximum and minimum prices expected to experience substantial changes.

  • 2026: The year is expected to begin with a maximum price of ₹1,071.42 and a minimum of ₹750.00. This suggests an expected range of price movements throughout the year.
  • 2027: The following year, the stock is expected to reach a higher maximum price of ₹1,178.57, while maintaining a relatively steady minimum price of ₹825.00, indicating expected potential stability.
  • 2028: In 2028, there is expected to be a significant increase in the maximum price to ₹1,649.99, while the minimum is expected to remain at ₹825.00, reflecting expected potential growth and stability.
  • 2029: The stock’s price is expected to experience a notable dip in 2029, with a maximum of ₹1,428.57 and a minimum of ₹714.28, signaling expected increased volatility.
  • 2030: The final year in this analysis is expected to see the stock reaching its highest maximum price at ₹1,857.14 and the highest minimum price at ₹1,300.00, suggesting an expected more substantial range of price fluctuations.

This analysis illustrates the expected dynamic nature of the stock’s price over these five years, with expected potential opportunities for investors to consider. It’s crucial to monitor these expected price trends closely to make informed investment decisions.

Five-Star Business Financial Condition (Last 5 Years)

Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Sales +
(Crores Rs)
402 787 1,050 1,254 1,521
Expenses +
(Crores Rs)
107 210 237 337 439
Operating Profit
(Crores Rs)
294 577 813 917 1,082
OPM % 73% 73% 77% 73% 71%
Other Income +
(Crores Rs)
1 1 1 2 8
(Crores Rs)
73 218 327 302 268
(Crores Rs)
4 10 11 12 17
Profit before tax
(Crores Rs)
218 349 476 604 805
Tax % 28% 25% 25% 25% 25%
Net Profit +
(Crores Rs)
156 262 359 454 604
EPS in Rs 65.4 103.8 142.26 15.57 20.71
Dividend Payout % 0% 0% 0% 0% 0%

Here’s a breakdown of the key metrics and trends:

  • Sales Growth: Sales have shown consistent growth over the years, increasing from ₹402 million in March 2019 to ₹1,521 million in March 2023. This demonstrates the company’s ability to expand its top-line revenue significantly.
  • Expenses: While expenses have also grown, they have been managed effectively. The expense growth has been gradual, indicating prudent cost management.
  • Operating Profit: Operating profit has steadily increased from ₹294 million in March 2019 to ₹1,082 million in March 2023. This indicates the company’s ability to improve profitability over time.
  • Other Income: Other income has grown gradually, with a notable increase in March 2023, reaching ₹8 million. This could be attributed to various non-operational sources of income.
  • Net Profit: Net profit has consistently grown from ₹156 million in March 2019 to ₹604 million in March 2023, indicating strong bottom-line growth.
  • Earnings Per Share (EPS): EPS has shown a positive trend, increasing from ₹65.4 in March 2019 to ₹20.71 in March 2023, reflecting an increase in earnings per share available to shareholders.
  • Dividend Payout: The company has not paid out any dividends during this period, as indicated by a 0% dividend payout percentage.

In summary, the company has demonstrated consistent revenue and profit growth over the five-year period, with effective cost management and a stable tax rate. However, there was a significant drop in EPS in March 2022, which should be further investigated. Additionally, the absence of dividend payouts suggests that the company may be reinvesting profits for growth or have a different financial strategy in place.


What is the Five Star Finances’ market capitalization?

Five Star Finance’s market capitalization is ₹23,138 Crores (₹23,138 Cr.).

What is the current share price of the Five Star Finances business company ?

The current share price of the company as of November 26th is ₹792.

What Is The Share Price Target For Five-Star Business By 2025?

The share price targets for 2025 show a consistent upward trajectory, starting at ₹656.71 in January and reaching ₹1,020.40 by December.

What Is The Share Price Target For Five-Star Business By 2030?

The share price target for 2030 is expected to range between ₹714.28 to ₹1,857.14.

What has been the company’s historical Return on Equity (ROE) performance, and what is the current ROE?

Over the past 10 years, the company’s ROE performance has not been provided. However, in the last 5 years, it stood at 16%, indicating a positive trend. Looking at the last 3 years, the ROE remained stable at 15%. In the most recent year, the company maintained an ROE of 15.0%, suggesting a consistent performance in generating returns for shareholders.

Can Five-Star Business Cross Rs. 1000 Milestone By 2030?

Based on the historical price data provided, it appears that the share price has the potential to cross ₹1,000 by 2030. The share price has shown consistent growth over the years, with a steady increase from ₹750.00 in 2026 to ₹1,857.14 in 2030. This upward trajectory suggests that if the trend continues, the share price is likely to surpass ₹1,000 by 2030.

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Should One Invest In Five-Star Business?

On the positive side, the company has been making solid profits, growing at an impressive rate of 61.9% over the past five years. This suggests they’re doing well financially. They’re also using their resources efficiently, with a Return on Capital Employed (ROCE) of 14.4% and a Return on Equity (ROE) of 15.0%, which means they’re making good use of their assets to benefit shareholders.

However, there are some downsides to consider. Despite their profitability, they don’t pay dividends to investors. So, if you’re looking for regular income from your investments, this might not be the right choice. Also, the fact that the company’s owners have been reducing their stake by -0.48% could be a sign that they’re not as confident about its future.

In terms of numbers, the company is valued at ₹23,138 Cr., and its stock is priced at ₹791. The Price/Earnings (P/E) ratio is 33.14, giving you an idea of how the stock is priced compared to its earnings. The book value per share is ₹149, which is what the company is theoretically worth based on its assets and liabilities. However, it’s worth noting that they’re not currently paying any dividends, so you won’t receive regular income from owning their stock.

In simple terms, investing in Five Star Finance Business has its positives and negatives. They make good money, but they don’t share it with investors through dividends, and the owners seem to be selling some of their stake. Before you decide, do your homework, think about what you want from your investment, and maybe talk to a financial expert for advice.