Five-Star Business Finance Limited (NSE: FIVESTAR) has reported another quarter of strong performance in Q2FY27. The quarter ended September 30, 2026, saw the company delivering very strong numbers across various parameters. Our upward trajectory in disbursements continued during the current quarter as well, where we recorded our historically best disbursements at INR 2,078 Cr, up 39% over the previous quarter and 74% year-on-year.

Record Disbursements and Portfolio Growth

The loan book also saw robust growth with our Assets Under Management (AUM) at INR 14,640 Cr, a growth of 7% over the previous quarter and 14% year-on-year. Importantly, this growth has come alongside improving collections, stable asset quality, and profitability.

Improved Collections and Asset Quality

Collections continue to trend very well with our unique customer collection efficiency (excluding NPAs) improving from 97.9% in Q1FY27 to 98.2% in the current quarter, along with improvement in X-bucket collections to 99.4% from 99.2% in Q1FY27, which has helped contain forward flows. As a result, the current bucket proportion of our AUM rose sharply from 83.30% to 84.78%, and 30+ DPD came down from 12.38% to 11.50%.

With our clear focus on containing flows from the early buckets, we are very confident that we will continue to see our portfolio quality improving in the coming quarters. Slippages eased marginally to 0.68% from 0.70% in Q1FY27 and Gross Stage 3 assets were broadly stable at 3.48%, despite macroeconomic headwinds being witnessed across the industry.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of Five-Star Business Finance Limited

Five-Star Business Finance Limited belongs to the Financial Services › Credit Services sector. Here’s a quick read on where the business and the stock stand today.

Five-Star falls 9.2% over three months and has not found a floor yet. The PEG of 0.61 signals undervaluation relative to growth. It is a potential re-rating candidate. D/E of 1.26 is elevated. As a result, debt servicing will compress free cash flow in a high-rate environment. The stock holds at 51% of its 52-week range with RSI at 45. In other words, neither side has a clear edge right now. Revenue grows at 27.5% and profits at 22.1% CAGR, with D/E of 1.26. Meanwhile, the stock dips 9.2% in three months without any fundamental deterioration. Consequently, the stock quietly becomes cheaper relative to earnings power. For long-term investors, that is a feature. Check Fundamentals of Five-Star Business Finance Limited.

Muthoot Microfin Limited (MUTHOOTMF) has earned a ‘Positive’ outlook from CareEdge Global, reflecting the company’s stronger asset quality and operating performance. This outlook revision follows CRISIL Ratings’ upgrade in June 2026. The rating agency has reaffirmed the long-term foreign currency rating at ‘CareEdge BB-’.

Improved Asset Quality

The Positive outlook reflects CareEdge Global Ratings’ expectation that MUTHOOTMF’s credit profile could strengthen if improvements in operating performance and asset quality are sustained. The agency noted a significant decline in gross non-performing assets, which dropped to 3.7% as of June 30, 2026, from 4.8% as of March 31, 2025. This improvement is a testament to the company’s effective management and strategic initiatives.

Operational Efficiency

According to the company’s provisional business update for Q2 FY27, assets under management (AUM) stood at ₹15,323 crore as of September 30, 2026, up 22% year-on-year. Quarterly disbursements rose 28% year-on-year to ₹2,900 crore, while collection efficiency improved by 477 basis points to 98.11%. The company’s cost of funds declined by 20 basis points from the previous quarter to 9.93%.

As a result, CareEdge Global Ratings also highlighted MUTHOOTMF’s established microfinance franchise, experienced management, comfortable capitalisation, and diversified funding sources. The rating factors in expected support from parent Muthoot Fincorp Limited, which holds a 50.2% stake in MUTHOOTMF and provides strategic oversight.

Muthoot Microfin Limited remains committed to empowering women borrowers and their businesses, and to building a resilient, well-funded institution that earns the continued confidence of its lenders and investors.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of Muthoot Microfin Limited

Muthoot Microfin Limited belongs to the Financial Services › Credit Services sector. Here’s a quick read on where the business and the stock stand today.

Muthoot falls 27.2% over three months and has not found a floor yet. The PEG stands at 9.23 — severely stretched. Any earnings miss could trigger a sharp de-rating. D/E reaches 3.08. High leverage in this environment is a material risk the market cannot ignore. Sellers drive 1.5x the volume of buyers. Furthermore, they controlled 17 of recent sessions versus 13 for buyers — a clear distribution signal. Revenue grows at 19.5% CAGR — a respectable pace. However, the stock drops 27.2% in three months without an obvious fundamental trigger. Sector-wide pressure or a valuation re-rating can persist for longer than expected. Therefore, there is no rush to step in. Check Fundamentals of Muthoot Microfin Limited.

SBFC Finance Limited (NSE: SBFC) has unveiled its Q2 FY27 investor presentation, showcasing a robust financial performance and strategic market focus. The company reported a 27% year-over-year growth in Asset Under Management (AUM) to ₹12,592 crore, driven by a 6% sequential increase in Q2 FY27. Profitability also surged with a 27% YoY increase in Profit After Tax (PAT) to ₹139 crore. The company’s credit quality remains strong with a gross Non-Performing Asset (NPA) rate of 2.6%.

Operational Efficiency and Market Focus

The company’s cost-to-AUM ratio improved by 33 basis points year-over-year to 4.1%, reflecting enhanced operational efficiency. SBFC Finance Limited is strategically focusing on the Secured Micro, Small, and Medium Enterprises (MSME) segment, targeting a market size of ₹4.61 lakh crore, which is growing at a CAGR of 23%. The company’s experienced management team, backed by marquee investors, is well-positioned to capitalize on this growth opportunity.

Business Momentum and Expansion

SBFC Finance Limited’s business momentum is evident with consistent AUM growth. The company’s AUM grew by 27% year-over-year and 6% quarter-over-quarter. The Secured MSME segment continues to be a significant driver, with AUM growing by 27% YoY and 6% QoQ. The company’s expansion strategy is also on track, with a presence in 18 states and 2 Union Territories, covering 202 cities through its 257 branches.

As SBFC Finance Limited continues to focus on its core strengths, the company is well-poised for sustained growth and profitability in the coming quarters.

Source: NSE Corporate Announcement

Fundamental & Technical Analysis of SBFC Finance Limited

SBFC Finance Limited belongs to the Financial Services › Credit Services sector. Here’s a quick read on where the business and the stock stand today.

SBFC falls 9.4% over three months and has not found a floor yet. The PEG of 0.44 is extremely low. Either the market misses the growth story, or there is a catch worth investigating. D/E of 1.65 is elevated. As a result, debt servicing will compress free cash flow in a high-rate environment. The stock sits at 13% of its 52-week range, close to annual lows. Historically, value investors build positions at these levels — though cheap stocks can stay cheap. Revenue grows at 37.0% and profits at 44.4% CAGR, with D/E of 1.65. Meanwhile, the stock dips 9.4% in three months without any fundamental deterioration. Consequently, the stock quietly becomes cheaper relative to earnings power. For long-term investors, that is a feature. Check Fundamentals of SBFC Finance Limited.