Is Five-Star Business Finance (FIVESTAR.NS) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Five-Star Business Finance (FIVESTAR.NS) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (Yahoo industry “Credit Services”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 29 September 2026.
Five-Star Business Finance is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 43.28% | Fail |
| Cash and interest-bearing investments | 30% | 11.21% | Pass |
| Prohibited income | 5% | 3.25% | Pass |
| Not just cash and debts | 90% | 13.46% | Pass |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (Yahoo industry “Credit Services”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- Interest-bearing debt is 43.3% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/2).Source: AAOIFI Shari'ah Standard 21
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Frequently Asked Questions about Five-Star Business Finance Limited (FIVESTAR.NS)
Is Five-Star Business Finance (FIVESTAR.NS) stock halal?▾
No. Five-Star Business Finance (FIVESTAR.NS) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (Yahoo industry “Credit Services”), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 29 September 2026.
What is Five-Star Business Finance's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Five-Star Business Finance's ratio is about 43.3%.
How much dividend purification is required for Five-Star Business Finance (FIVESTAR.NS) stock?▾
Five-Star Business Finance does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Five-Star Business Finance operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Five-Star Business Finance's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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