Five-Star Business Finance Shares Surge: What Investors Need to Know

Chennai, October 29 – Today marked a significant uptick for Five-Star Business Finance, with shares climbing by 13.23%, closing at ₹608.10. This positive shift follows a period where the stock traded between ₹561.85 and ₹528.25. The current trading volume reached 21.56 lakh shares, contributing to the company’s market capitalization of ₹15,815 crore. It’s noteworthy that the company’s shares have recorded a 52-week high of ₹888.80 and a 52-week low of ₹501.

About Five-Star Business Finance Limited

Five-Star Business Finance Limited is a prominent Indian non-banking financial company (NBFC), established in 1984 and headquartered in Chennai, Tamil Nadu. The company’s shares are actively traded on both the NSE under the ticker symbol FIVESTAR and on the BSE with the code 543663.

Key Trigger: Strong Q2 FY26 Financial Performance

In the second quarter of FY26, Five-Star Business Finance announced impressive financial results:

• Total income surged by 14.3% year-on-year to reach ₹80,650.23 lakh, compared to ₹70,584.12 lakh in Q2 FY25, marking a 1.9% increase quarter-on-quarter.
• Interest income also saw a robust increase of 13.8%, leading to a total of ₹77,312.30 lakh.
• Revenue from operations climbed to ₹79,943.53 lakh, a growth of 13.8%.

Detailed Financial Metrics

• Total Expenses: Reached ₹42,458.14 lakh, which reflects a 22.1% year-on-year increase but a slight decline of 2.7% from the previous quarter.
• Profit Before Tax increased to ₹38,192.09 lakh, showing a 6.6% rise year-on-year and a 7.6% uptick sequentially.
• Profit After Tax reached ₹28,613.81 lakh, marking a 6.8% increase compared to ₹26,793.70 lakh in Q2 FY25.

Expense Management Insights

Despite rising expenses, certain costs showed improvement:

• Finance Costs: Decreased to ₹17,997.57 lakh from ₹18,729.22 lakh.
• Employee Expenses: Reduced to ₹14,362.05 lakh, an 8% decrease from the prior quarter.
• Impairment on Financial Instruments: Rose to ₹5,103.80 lakh from ₹4,778.40 lakh in Q1 FY26.
• Depreciation and Amortization: Increased to ₹911.39 lakh, up from ₹666.80 lakh in Q2 FY25.

Half-Year Overview: H1 FY26 Performance

For the first half of FY26, the company reported:

• Total Income of ₹1,59,768.97 lakh, a 16.2% increase from ₹1,37,522.23 lakh in H1 FY25.
• Profit After Tax of ₹55,244.97 lakh, reflecting a 6.3% increase from ₹51,950.70 lakh.
• Earnings Per Share (EPS): Basic EPS climbed to ₹9.72, compared to ₹9.16 in Q2 FY25, while diluted EPS rose to ₹9.69 from ₹9.07.

The firm maintains a face value of ₹1 per share and reports an annualized P/E ratio of 14.55.

Investor Sentiment: The Driving Force Behind the Surge

The robust financial performance has bolstered investor confidence, with the share price gaining traction due to high demand. The 6.8% increase in profit has served as a catalyst, propelling the stock’s positive momentum. Industry observers are keen to see if this enthusiasm will sustain through the week.

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The information provided herein is intended solely for informational purposes and does not constitute investment recommendations.

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