Analysts Are Updating Their Five-Star Business Finance Limited (NSE:FIVESTAR) Estimates After Its Third-Quarter Results

Investors in Five-Star Business Finance Limited (NSE:FIVESTAR) had a good week, as its shares rose 2.2% to close at ₹725 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of ₹5.6b and statutory earnings per share of ₹28.39. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Five-Star Business Finance

After the latest results, the eleven analysts covering Five-Star Business Finance are now predicting revenues of ₹25.9b in 2026. If met, this would reflect a substantial 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 23% to ₹43.00. Before this earnings report, the analysts had been forecasting revenues of ₹26.1b and earnings per share (EPS) of ₹43.09 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹873. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Five-Star Business Finance, with the most bullish analyst valuing it at ₹990 and the most bearish at ₹724 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 28% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 22% per year. It's clear that while Five-Star Business Finance's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Five-Star Business Finance. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Five-Star Business Finance analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Five-Star Business Finance has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.