Shares of Five-Star Business Finance experienced a decline of 9% to Rs 698 on October 31, following a previous drop of 13%, resulting in a total decline of nearly 19% over two days. This decline was caused by the company revising its guidance for Assets Under Management (AUM) growth, lowering it from the previous target of 30% to 25%. Despite reporting a strong year-on-year growth of 32.2% in AUM for Q2 FY2024, reaching Rs 10,927 crore, the market reacted negatively to the revised outlook.

The company's asset quality showed mixed results, with Gross Non-Performing Assets (NPA) increasing from 1.41% in June to 1.47%, and Net NPA rising from 0.68% to 0.71%. Provisions also saw a significant increase, doubling year-over-year to Rs 21.8 crore and reflecting a sequential increase of 17.5%. Despite the strong quarterly performance, the company's stock has declined by 14% over the past month, causing concerns among investors.

Overall, the decline in Five-Star Business Finance's stock price can be attributed to the revised guidance for AUM growth and the mixed results in asset quality. While the company reported strong growth in AUM, the market reacted negatively to the revised outlook. The increase in NPAs and provisions also raised concerns among investors. As a result, the stock has declined by 14% over the past month, causing further worries for investors.