The Five-Star Business Finance Limited (NSE:FIVESTAR) First-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Five-Star Business Finance Limited (NSE:FIVESTAR) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.6% to ₹778. Five-Star Business Finance reported in line with analyst predictions, delivering revenues of ₹5.1b and statutory earnings per share of ₹28.39, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Five-Star Business Finance

Taking into account the latest results, the most recent consensus for Five-Star Business Finance from eleven analysts is for revenues of ₹22.3b in 2025. If met, it would imply a substantial 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 19% to ₹36.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.2b and earnings per share (EPS) of ₹37.15 in 2025. 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 ₹919. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Five-Star Business Finance, with the most bullish analyst valuing it at ₹1,020 and the most bearish at ₹801 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 analysts are definitely expecting Five-Star Business Finance's growth to accelerate, with the forecast 35% annualised growth to the end of 2025 ranking favourably alongside historical growth of 28% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Five-Star Business Finance to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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 should always think about risks though. Case in point, we've spotted 1 warning sign for Five-Star Business Finance 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com