Five-Star Business Finance Limited, established in 1984, is a leading non-deposit taking, non-banking finance company (NBFC) in India, with a primary focus on South India. The company is dedicated to providing secured business loans to micro-entrepreneurs and self-employed individuals, offering them financial solutions that address both business and personal needs. Their range of services includes small business loans and small mortgage loans, specifically designed to support borrowers who might face challenges in accessing funding through traditional banking channels. This focus on micro-entrepreneurs and self-employed individuals highlights the company’s commitment to fostering financial inclusion and supporting the growth of small businesses in the region.
As an NBFC-ND-SI (Non-Deposit taking Systemically Important NBFC) registered with the Reserve Bank of India (RBI), Five-Star Business Finance adheres to stringent regulatory standards, ensuring operational transparency and financial stability. The company’s responsible lending practices are tailored to meet the unique requirements of their target demographic, thereby contributing significantly to the economic development of underserved communities. By empowering small business owners and self-employed individuals with the necessary financial tools, Five-Star Business Finance plays a pivotal role in promoting entrepreneurship and driving economic growth in South India.
About of Five-Star Business Finance Ltd
Five-Star Business Finance Limited, established in 1984 in Chennai, Tamil Nadu, India, began by providing small loans to local individuals and businesses. Over time, it expanded its reach, focusing on micro-entrepreneurs and self-employed individuals in South India, thereby addressing the unique financial needs of these underserved groups. The company has grown significantly, adapting to the evolving financial landscape and regulatory environment, and built a strong reputation for offering secured business loans and small mortgage loans. Registered with the Reserve Bank of India (RBI) as a Non-Deposit taking Systemically Important Non-Banking Financial Company (NBFC-ND-SI), Five-Star Business Finance Limited underscores its commitment to high standards of operation and customer service, playing a crucial role in the financial sector.
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | |
| Promoters + | 34.39% | 31.30% | 26.54% | 26.51% | 26.51% |
| FIIs + | 8.74% | 50.22% | 54.28% | 56.06% | 57.45% |
| DIIs + | 4.71% | 7.52% | 7.82% | 6.97% | 6.07% |
| Public + | 52.15% | 10.97% | 11.36% | 10.44% | 9.96% |
| No. of Shareholders | 30,655 | 40,121 | 51,906 | 50,442 | 48,897 |
The shareholding pattern of Five-Star Business Finance Limited from June 2023 to June 2024 demonstrates significant shifts among different investor categories. Promoters’ holdings saw a notable decrease, falling from 34.39% in June 2023 to 26.51% by March 2024 and remaining steady through June 2024. In contrast, Foreign Institutional Investors (FIIs) increased their stake dramatically from 8.74% in June 2023 to 57.45% by June 2024, indicating strong foreign interest and confidence in the company’s prospects.
Domestic Institutional Investors (DIIs) also showed an upward trend initially, rising from 4.71% in June 2023 to 7.82% in December 2023, before slightly decreasing to 6.07% by June 2024. The public shareholding witnessed a significant reduction, dropping from 52.15% in June 2023 to 9.96% by June 2024, suggesting a consolidation of shares among institutional investors.
The number of shareholders increased substantially from 30,655 in June 2023 to a peak of 51,906 in December 2023, before slightly declining to 48,897 by June 2024. This trend reflects the dynamic changes in investor composition and the growing interest in Five-Star Business Finance Limited over the period.
Below are the trading platforms that you can use to purchase Five-Star Business Finance Limited shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| August 2024 | 791.05 | 687.87 |
| September 2024 | 822.70 | 715.39 |
| October 2024 | 806.56 | 701.36 |
| November 2024 | 838.83 | 729.42 |
| December 2024 | 847.22 | 736.71 |
In August 2024, Five-Star Business Finance Limited is projected to have a maximum price of ₹791.05 and a minimum price of ₹687.87. Moving into September 2024, the maximum price is expected to reach ₹822.70, while the minimum price may be ₹715.39. In October 2024, the company’s maximum price is anticipated to be ₹806.56, with a minimum price of ₹701.36. By November 2024, Five-Star Business Finance Limited’s maximum price is forecasted to be ₹838.83, and the minimum price is likely to be ₹729.42. Finally, in December 2024, the maximum price is expected to be ₹847.22, while the minimum price is projected to be ₹736.71.
| When | Maximum Price | Minimum Price |
| January 2025 | 855.69 | 658.22 |
| February 2025 | 864.33 | 664.87 |
| March 2025 | 882.48 | 678.83 |
| April 2025 | 873.74 | 672.11 |
| May 2025 | 848.30 | 652.54 |
| June 2025 | 886.47 | 681.90 |
| July 2025 | 869.09 | 668.53 |
| August 2025 | 895.97 | 689.20 |
| September 2025 | 906.72 | 697.48 |
| October 2025 | 930.29 | 715.61 |
| November 2025 | 953.55 | 733.50 |
| December 2025 | 996.46 | 766.51 |
In January 2025, Five-Star Business Finance Limited is projected to have a maximum price of ₹855.69 and a minimum of ₹658.22. By December 2025, the company’s share price is expected to rise to a maximum of ₹996.46, with a minimum of ₹766.51. Throughout the year, the price is anticipated to fluctuate between these ranges, reflecting a general upward trend.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,026.35 | 789.50 |
| February 2026 | 1,000.69 | 769.77 |
| March 2026 | 1,020.71 | 785.16 |
| April 2026 | 1,041.54 | 801.18 |
| May 2026 | 1,031.23 | 793.25 |
| June 2026 | 1,057.01 | 813.08 |
| July 2026 | 1,036.28 | 797.14 |
| August 2026 | 1,068.33 | 821.79 |
| September 2026 | 1,089.70 | 838.23 |
| October 2026 | 1,118.03 | 860.02 |
| November 2026 | 1,145.98 | 881.52 |
| December 2026 | 1,174.63 | 903.56 |
| When | Maximum Price | Minimum Price |
| January 2027 | 1,186.38 | 912.60 |
| February 2027 | 1,216.80 | 936.00 |
| March 2027 | 1,264.25 | 972.50 |
| April 2027 | 1,239.46 | 953.43 |
| May 2027 | 1,203.36 | 925.66 |
| June 2027 | 1,257.51 | 967.32 |
| July 2027 | 1,232.86 | 948.35 |
| August 2027 | 1,270.99 | 977.68 |
| September 2027 | 1,315.47 | 1,011.90 |
| October 2027 | 1,349.67 | 1,038.21 |
| November 2027 | 1,383.41 | 1,064.17 |
| December 2027 | 1,418.00 | 1,090.77 |
| When | Maximum Price | Minimum Price |
| January 2028 | 1,446.36 | 1,112.58 |
| February 2028 | 1,483.45 | 1,141.11 |
| March 2028 | 1,541.30 | 1,185.62 |
| April 2028 | 1,511.08 | 1,162.37 |
| May 2028 | 1,467.07 | 1,128.51 |
| June 2028 | 1,533.09 | 1,179.30 |
| July 2028 | 1,503.02 | 1,156.17 |
| August 2028 | 1,549.51 | 1,191.93 |
| September 2028 | 1,603.74 | 1,233.65 |
| October 2028 | 1,645.44 | 1,265.72 |
| November 2028 | 1,686.58 | 1,297.37 |
| December 2028 | 1,728.74 | 1,329.80 |
| When | Maximum Price | Minimum Price |
| January 2029 | 1,763.32 | 1,356.40 |
| February 2029 | 1,808.53 | 1,391.18 |
| March 2029 | 1,879.06 | 1,445.43 |
| April 2029 | 1,842.22 | 1,417.09 |
| May 2029 | 1,788.56 | 1,375.82 |
| June 2029 | 1,869.05 | 1,437.73 |
| July 2029 | 1,832.40 | 1,409.54 |
| August 2029 | 1,889.07 | 1,453.13 |
| September 2029 | 1,955.19 | 1,503.99 |
| October 2029 | 2,006.02 | 1,543.09 |
| November 2029 | 2,056.17 | 1,581.67 |
| December 2029 | 2,107.58 | 1,621.21 |
| When | Maximum Price | Minimum Price |
| January 2030 | 2,149.73 | 1,653.64 |
| February 2030 | 2,204.85 | 1,696.04 |
| March 2030 | 2,290.84 | 1,762.18 |
| April 2030 | 2,245.92 | 1,727.63 |
| May 2030 | 2,180.50 | 1,677.31 |
| June 2030 | 2,278.63 | 1,752.79 |
| July 2030 | 2,233.95 | 1,718.42 |
| August 2030 | 2,303.04 | 1,771.57 |
| September 2030 | 2,383.65 | 1,833.57 |
| October 2030 | 2,445.62 | 1,881.25 |
| November 2030 | 2,506.76 | 1,928.28 |
| December 2030 | 2,569.43 | 1,976.48 |
In January 2030, Five-Star Business Finance Limited is expected to have a maximum price of ₹2,149.73 and a minimum price of ₹1,653.64. By December 2030, the share price is projected to reach a maximum of ₹2,569.43 and a minimum of ₹1,976.48.
Financial Condition of Steel Five-Star Business Finance Limited: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | TTM | |
| Sales + | 787 | 1,050 | 1,254 | 1,521 | 2,183 | 2,369 |
| Expenses + | 210 | 237 | 337 | 439 | 586 | 618 |
| Operating Profit | 577 | 813 | 917 | 1,082 | 1,597 | 1,751 |
| OPM % | 73% | 77% | 73% | 71% | 73% | 74% |
| Other Income + | 1 | 1 | 2 | 8 | 12 | 12 |
| Interest | 218 | 327 | 302 | 268 | 468 | 531 |
| Depreciation | 10 | 11 | 12 | 17 | 25 | 26 |
| Profit before tax | 349 | 476 | 604 | 805 | 1,116 | 1,206 |
| Tax % | 25% | 25% | 25% | 25% | 25% | |
| Net Profit + | 262 | 359 | 454 | 604 | 836 | 904 |
| EPS in Rs | 103.8 | 142.26 | 15.57 | 20.71 | 28.58 | 30.93 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Five-Star Business Finance Limited has demonstrated strong and consistent financial growth from March 2020 to March 2024. The company’s sales revenue increased from ₹787 crore in March 2020 to ₹2,183 crore in March 2024, with a trailing twelve months (TTM) figure reaching ₹2,369 crore. This upward trend in sales reflects the company’s successful expansion and increasing demand for its services. Operating profit also saw a significant rise from ₹577 crore in March 2020 to ₹1,597 crore in March 2024, with an impressive TTM figure of ₹1,751 crore. The operating profit margin (OPM) remained robust, fluctuating slightly but generally maintaining a strong average around 73-74%.
Despite the increase in expenses from ₹210 crore to ₹586 crore over the same period, the company’s ability to manage costs effectively is evident in the maintained high OPM. Other income, though minimal, showed a slight increase from ₹1 crore to ₹12 crore. Interest expenses fluctuated but ultimately rose from ₹218 crore to ₹468 crore, reflecting the company’s growing leverage. Depreciation costs also increased from ₹10 crore to ₹25 crore, indicating investments in long-term assets.
Profit before tax surged from ₹349 crore to ₹1,116 crore, and net profit followed suit, rising from ₹262 crore to ₹836 crore, with a TTM net profit of ₹904 crore. The company maintained a consistent tax rate of 25%. Earnings per share (EPS) saw substantial growth, increasing from ₹103.8 in March 2020 to ₹28.58 in March 2024, and further to ₹30.93 in the TTM. Despite the robust financial performance, the dividend payout ratio remained at 0%, suggesting the company’s strategy to reinvest profits for future growth. This financial trajectory underscores Five-Star Business Finance Limited’s strong market position and effective growth strategy.
FAQS
As of August 5th, 2024, Five-Star Business Finance Limited share price is Rs.778.
Based on market analysis, Five-Star Business Finance Limited share price target for 2025 ranges between ₹652.54 to ₹996.46.
It is unlikely that Five-Star Business Finance Limited share price will reach 2000 INR by 2025.
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Conclusion: Is Five-Star Business Finance Limited a good buy in 2024?
In conclusion, Five-Star Business Finance Limited has showcased remarkable financial performance over the past few years, with substantial growth in both revenue and profit. From March 2020 to March 2024, the company’s sales soared to ₹2,183 crore and operating profit climbed to ₹1,597 crore, reflecting its successful business expansion and efficient operations. Net profit also saw a significant increase to ₹836 crore, with EPS reaching ₹30.93. The company’s consistent operating profit margin and strategic reinvestment of earnings, despite a 0% dividend payout, highlight its strong financial health and commitment to sustainable growth. Overall, Five-Star Business Finance Limited’s impressive financial trajectory positions it well for continued success and market leadership.
What did we learn?
- 1
- 2 About of Five-Star Business Finance Ltd
- 3 Shareholding Patterns of Five-Star Business Finance Ltd
- 4 How to purchase Five-Star Business Finance Limited shares?
- 5 Five-Star Business Finance Limited Share Price Prediction: 2024 to 2025
- 5.1 Five-Star Business Finance Limited Share Price Target 2024
- 5.2 Five-Star Business Finance Limited Share Price Target 2025
- 5.3 Five-Star Business Finance Limited Share Price Target 2026
- 5.4 Five-Star Business Finance Limited Share Price Prediction 2027
- 5.5 Five-Star Business Finance Limited Share Price Target 2028
- 5.6 Five-Star Business Finance Limited Share Price Target 2029
- 5.7 Five-Star Business Finance Limited Share Price Prediction 2030
- 6 Financial Condition of Steel Five-Star Business Finance Limited: Last 5 years
- 7 FAQS
- 8 Conclusion: Is Five-Star Business Finance Limited a good buy in 2024?
