Five-Star Business Finance Moat Analysis: Score & Risks
Five-Star Business Finance Ltd.
A first-pass moat teardown of Five-Star Business Finance Ltd., built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow read — primary edge in Cost Advantage. Provisional, single-pass evidence.
Five-Star Business Finance Ltd. scores 5.00 on MoatSCORE 6.0 — a narrow moat in NBFC. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“Our cost of funds for the quarter dropped from 9.12% in Q3 to 8.95% in Q4 and for the full year, we saw a drop in our cost of funds from 9.64% in last year to 9.21% this year.”
“People are paying a lot more through NACH, which are also qualitative points that will help us ease the collection pressures when, let's say, delinquency hits and all that.”
“Interest Income (as a % of average portfolio) 23.51% 24.22% 23.70% 24.03% 24.27% Interest Expenses (as a % of average borrowings) 9.54% 9.65% 9.63% 9.64% 9.71% Net Interest Income % 13.97% 14.57% 14.07% 14.39% 14.56%”
“the drop in disbursement can be attributed to the additional controls that have been implemented for the first time during this quarter towards onboarding the right customers.”
“CARE Ratings Ltd. has re-affirmed the credit rating of the long term bank facilities of the company as CARE AA – and the outlook on ratings has been revised from Stable to Positive.”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 5.0 — below 6, so the band is capped narrow. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 113 Indian companies we have scored for moat durability — 88 narrow, 25 narrow-trending-wide, none wide. The full ranked read: Wide-Moat Stocks in India: We Scored 113 Companies and Found None. Every score, dimension by dimension, is free in the Moat Screener.
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