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₹117 - That's What Analysts Think SBFC Finance Limited (NSE:SBFC) Is Worth After These Results
SBFC Finance Limited (NSE:SBFC) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to ₹102 in the week after its latest full-year results. It was a workmanlike result, with revenues of ₹8.9b coming in 2.4% ahead of expectations, and statutory earnings per share of ₹3.15, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
We've discovered 2 warning signs about SBFC Finance. View them for free.After the latest results, the six analysts covering SBFC Finance are now predicting revenues of ₹10.7b in 2026. If met, this would reflect a substantial 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 23% to ₹3.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹10.7b and earnings per share (EPS) of ₹3.93 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.
View our latest analysis for SBFC Finance
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to ₹117. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values SBFC Finance at ₹125 per share, while the most bearish prices it at ₹100.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SBFC Finance's past performance and to peers in the same industry. It's pretty clear that there is an expectation that SBFC Finance's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% annually. So it's pretty clear that, while SBFC Finance's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SBFC Finance going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for SBFC Finance that you need to be mindful 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.
About NSEI:SBFC
SBFC Finance
A financial services platform, provides financing solutions.
Reasonable growth potential with proven track record.
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