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Five-Star Business Finance Shares Dip 3% as Dolat Capital Sets ₹700 Target
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CNBC TV18•29-09-2026, 13:04
Five-Star Business Finance Shares Dip 3% as Dolat Capital Sets ₹700 Target
- •Shares of Five-Star Business Finance Ltd. fell over 3% after Dolat Capital initiated coverage with a 'Buy' rating and a ₹700 price target.
- •Dolat Capital identifies Five-Star as a Chennai-based mid-tier NBFC providing secured micro-loans against property to small businesses and self-employed individuals.
- •The brokerage notes that approximately 40% of Five-Star's customer base overlaps with MFI borrowers, a segment previously impacted by over-leveraging.
- •Dolat Capital anticipates a recovery in growth and asset quality, projecting a 23% CAGR in AUM between FY26 and FY29, with declining credit costs.
- •Despite a projected 23% CAGR in earnings (FY27-FY29) and a stronger outlook than peers, the stock is currently trading at a 10-30% discount.
Key Questions Answered
Shares of Five-Star Business Finance fell more than 3% after brokerage firm Dolat Capital initiated coverage on the stock with a 'Buy' rating and a price target of ₹700 per share.
Dolat Capital estimates that Five-Star Business Finance's assets under management will grow at a 23% compound annual growth rate between FY26 and FY29.
The Chennai-based non-banking financial company provides secured micro-loans against property to small businesses and self-employed borrowers who have limited access to formal credit.
