Five Star Business Finance Ltd., a prominent player in the financial services sector, witnessed a significant block trade on the National Stock Exchange (NSE) recently. The transaction has caught the attention of market watchers and investors alike.

Block Trade Details

A substantial block of approximately 1,006,459 shares of Five-Star Business Finance changed hands in a single trade. The transaction's total value amounted to Rs. 81.41 crores, with each share priced at Rs. 808.85.

Market Impact

Block trades of this magnitude often indicate strategic moves by large institutional investors or significant shareholders. While the identities of the buyer and seller remain undisclosed, such transactions can sometimes signal shifts in investor sentiment or portfolio realignments.

Company Overview

Five-Star Business Finance Ltd. is known for its presence in the financial services industry. The company's shares trading at Rs. 808.85 during this block trade reflect the current market valuation and investor interest in the firm.

Investor Considerations

While block trades can create short-term price fluctuations, long-term investors typically focus on the company's fundamental strengths and growth prospects. Stakeholders and potential investors may want to keep an eye on any subsequent disclosures or announcements from Five-Star Business Finance that could provide context to this significant share movement.

As the market digests this information, it remains to be seen how this block trade might influence the stock's performance in the coming trading sessions. Investors are advised to conduct their own research and consider multiple factors before making investment decisions.

Five-Star Business Finance Limited , a leading non-banking finance company, has announced its financial results for the fourth quarter and fiscal year ended March 31, 2025, showcasing robust growth and solid performance across key metrics.

Q4FY25 Highlights

• Assets Under Management (AUM) grew by 23% year-over-year to ₹11,877.00 crore
• Disbursements increased by 9% year-over-year to ₹1,460.00 crore
• Profit After Tax (PAT) rose by 18% year-over-year to ₹279.00 crore
• Net Interest Margin stood at 16.84%
• Return on Assets (ROA) was 8.04%
• Return on Equity (ROE) reached 18.36%

FY2025 Performance

• Full-year PAT surged by 28.30% to ₹1,073.00 crore
• AUM expanded by 23.20% to ₹11,877.00 crore
• Disbursements for the year totaled ₹4,970.00 crore, a slight increase of 1.81%

Asset Quality and Collections

The company reported a marginal increase in Gross Stage 3 Assets, which stood at 1.79% compared to 1.38% in the previous year. Net Stage 3 Assets also saw a slight uptick to 0.88% from 0.63% in FY2024. Despite these increases, Five-Star Business Finance maintained strong collection efficiency at 97.7% for the quarter, with unique customer collection efficiency at 96.2%.

Expansion and Network Growth

Five-Star Business Finance continued its expansion strategy, adding 19 new branches during Q4FY25. The company now operates a network of 748 branches across 11 states and union territories, serving approximately 460,000 active live accounts.

Liquidity and Borrowings

The company maintained a robust liquidity position of ₹2,295.00 crore as of March 31, 2025. Total borrowings, including debt securities, stood at ₹7,922.00 crore. Notably, the cost of incremental debt during the quarter decreased to 9.29%, down from 9.56% in the previous quarter.

Dividend Announcement

To commemorate crossing the ₹1,000.00 crore PAT milestone, the Board of Directors has recommended a dividend of ₹2.00 per share, representing a 200% payout on face value and translating to a dividend payout ratio of 5.5%.

Management Commentary

Mr. Lakshmipathy Deenadayalan, Chairman & Managing Director, commented on the results, stating, "It has been a good quarter for Five Star, and the most notable happening during the current quarter was that we were back on track as far as our disbursements are concerned, recording a q-o-q disbursement growth of 55%."

He added, "Our portfolio grew by 6% on q-o-q basis and 23% for the full year. The disruption in Karnataka on account of the ordinance made us pause our disbursements in the state leading a shortfall in growth for the full year. But, as a company, we are focused on 'Quality Growth' and not growth for the sake of growth."

Mr. Deenadayalan also addressed the slight increase in DPD and NPA numbers, attributing it to the trickling effect of the overleverage crisis on secured portfolio and disruption in Karnataka. However, he expressed confidence that the company's asset quality remains among the best for its borrower profile.

Five-Star Business Finance continues to focus on maintaining a strong infrastructure framework to manage risk effectively while pursuing growth opportunities in the small business loan segment.

With its strong financial performance and strategic expansion, Five-Star Business Finance Limited appears well-positioned to continue its growth trajectory in the coming fiscal year.