Five Star Business Finance Limited
Five-Star Business Finance Limited (FSBFL) is a Chennai-headquartered NBFC extending secured loans to micro entrepreneurs and self-employed individuals, primarily in semi-urban markets. The company commenced operations in 1984, with a focus on consum...
Key Metrics
EPS
28.69
Current ratio
8.26
Debt/Equity
1.00
Debt/EBITDA
3.81
Interest coverage ratio
-
Operating Cashflow to total debt
-0.26
Financials
Pros & Cons
Exclusive on TAP Bonds
Here's what we like about this company and potential risks we have identified.
Pros
Strong capital structure to support medium-term portfolio growth
Strong earnings profile
Adequate internal control and risk management systems
Liquidity: Strong
Cons
Modest credit profile of target customer segment; asset quality has, however, remained under control –
Low portfolio seasoning and geographically concentrated operations
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About Five Star Business Finance Limited bond.
This comprehensive profile covers key factual information about FIVE STAR BUSINESS FINANCE LIMITED. Five-Star Business Finance Limited (FSBFL) is a Chennai-headquartered NBFC extending secured loans to micro entrepreneurs and self-employed individuals, primarily in semi-urban markets. The company commenced operations in 1984, with a focus on consumer loans and vehicle finance. In 2005, it shifted its focus to small business loans with a typical loan ticket size of Rs. 2- 10 lakh and an average ticket size of Rs. 3-3.5 lakh. Its loans are predominantly backed by self-occupied residential properties. As of September 30, 2023, the company had 456 branches across 10 states/Union Territories. FSBFL was listed on the NSE and BSE in November 2022. As of September 2023, the single largest shareholder comprised the individual promoters & promoter group (Mr. Lakshmipathy Deenadayalan and his family), with an 18.3% stake in the company, on a fully diluted basis.The company has 619 branches in 18 states and AUM of Rs 13188 crore as on June 30, 2024. Profit after tax (PAT) increased to Rs 244 crore in fiscal 2024 from Rs 180 crore in fiscal 2023. The company reported a PAT of Rs 70 crore for quarter ended June 30, 2024 and Rs 54 crore from same period of FY23. Return on managed assets (RoMA) remained stable at 2.1% in fiscal 2024 and 2023., driven by better lower credit cost of 0.6%. Annualised RoMA for the quarter ended June 30, 2024, was 2.0%, on the back of higher credit cost of 1.0%, it was 0.6% in fiscal 2024. Since the change in management in October, 2021 the Company has taken significant efforts to expand its portfolio in India and overseas EPS in Mar-2024 was 28.69. Current ratio in Mar-2024 was 8.26. Debt/Equity in Mar-2024 was 1.00. Debt/EBITDA in Mar-2024 was 3.81. Interest coverage ratio in Mar-2024 was . Operating Cashflow to total debt in Mar-2024 was -0.26. Total revenue for Mar-2025(E) was ₹2725.41. Net income for Mar-2025(E) stood at ₹1,548.77. Total assets as of Mar-2024 were ₹11688.78. Operating cash flow for Mar-2024 was ₹-2,122.34. The company’s borrowing relationships include AU Small Finance Bank Limited (₹N/A Cr), Axis Bank Limited (₹N/A Cr), Bandhan Bank Limited (₹N/A Cr), Bank of Baroda (₹N/A Cr), Bank of India (₹N/A Cr), Bank of Maharashtra (₹N/A Cr), Canara Bank (₹N/A Cr), City Union Bank Limited (₹N/A Cr), DBS Bank India Limited (₹N/A Cr), Federal Bank Limited (₹N/A Cr), HDFC Bank Limited (₹N/A Cr), HSBC Limited (₹N/A Cr), IDFC FIRST Bank Limited (₹N/A Cr), Indian Bank (₹N/A Cr), IndusInd Bank Limited (₹N/A Cr), Karnataka Bank Limited (₹N/A Cr), Kotak Mahindra Bank Limited (₹N/A Cr), Karur Vysya Bank Limited (₹N/A Cr), National Bank for Agriculture and Rural Development (₹N/A Cr), Punjab National Bank (₹N/A Cr), Qatar National Bank (Q.P.S.C.) (₹N/A Cr), RBL Bank Limited (₹N/A Cr), South Indian Bank Limited (₹N/A Cr), State Bank of India (₹N/A Cr), Ujjivan Small Finance Bank Limited (₹N/A Cr), Union Bank of India (₹N/A Cr), YES Bank Limited (₹N/A Cr), YES Bank Limited (₹N/A Cr), Axis Bank Limited (₹N/A Cr), IndusInd Bank Limited (₹N/A Cr), ICICI Bank Limited (₹N/A Cr), Small Industries Development Bank of India (₹N/A Cr), Federal Bank Limited (₹N/A Cr), City Union Bank Limited (₹N/A Cr), YES Bank Limited (₹N/A Cr), Kotak Mahindra Bank Limited (₹N/A Cr), Bandhan Bank Limited (₹N/A Cr), Axis Bank Limited (₹N/A Cr), HDFC Bank Limited (₹N/A Cr), IDFC FIRST Bank Limited (₹N/A Cr), Karur Vysya Bank Limited (₹N/A Cr), State Bank of India (₹N/A Cr), IndusInd Bank Limited (₹N/A Cr), Bank of Baroda (₹N/A Cr), ICICI Bank Limited (₹N/A Cr), (₹N/A Cr). Peers and comparison entities consist of FIVE-STAR BUSINESS FINANCE LIMITED, Bajaj Finance Limited, Jio Financial Services Limited, Cholamandalam Investment and Finance Company Limited. As of Dec 2024, promoters hold N/A% while others hold N/A% of equity. Key strengths include: Strong capital structure to support medium-term portfolio growth; Strong earnings profile; Adequate internal control and risk management systems; Liquidity: Strong. Key risks include: Modest credit profile of target customer segment; asset quality has, however, remained under control –; Low portfolio seasoning and geographically concentrated operations. Leadership team details include Anand Raghavan (Independent Director), Bhama Krishnamurthy (Independent Director), Lakshmipathy Deenadayalan (Chairman & Managing Director), Ramkumar Ramamoorthy (Independent Director), Rangarajan Krishnan (Chief Executive Officer), Shalini Baskaran (Company Secretary & Compliance Officer), Srikanth Gopalakrishnan (Chief Financial Officer), T T Srinivasaraghavan (Independent Director), Thirulokchand Vasan (Non Executive Director). This detailed corporate overview is structured to provide a thorough understanding of all available data points, enhance search visibility, and support investor analysis.