Five-Star Business Finance Limited (NSE:FIVESTAR) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

The investors in Five-Star Business Finance Limited's (NSE:FIVESTAR) will be rubbing their hands together with glee today, after the share price leapt 22% to ₹653 in the week following its second-quarter results. Five-Star Business Finance reported in line with analyst predictions, delivering revenues of ₹6.3b and statutory earnings per share of ₹9.69, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Five-Star Business Finance after the latest results.

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Taking into account the latest results, the most recent consensus for Five-Star Business Finance from ten analysts is for revenues of ₹25.6b in 2026. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 4.9% to ₹39.37. Before this earnings report, the analysts had been forecasting revenues of ₹25.5b and earnings per share (EPS) of ₹39.79 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Five-Star Business Finance

There were no changes to revenue or earnings estimates or the price target of ₹743, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Five-Star Business Finance at ₹833 per share, while the most bearish prices it at ₹650. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Five-Star Business Finance's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 26% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Five-Star Business Finance is expected to grow much faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹743, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Five-Star Business Finance going out to 2028, and you can see them free on our platform here..

Even so, be aware that Five-Star Business Finance is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.