This Just In: Analysts Are Boosting Their Redington Limited (NSE:REDINGTON) Outlook for This Year

Redington Limited (NSE:REDINGTON) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Redington has also found favour with investors, with the stock up a noteworthy 24% to ₹322 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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After this upgrade, Redington's three analysts are now forecasting revenues of ₹1.5t in 2027. This would be a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to expand 20% to ₹26.05. Before this latest update, the analysts had been forecasting revenues of ₹1.3t and earnings per share (EPS) of ₹22.90 in 2027. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Redington

It will come as no surprise to learn that the analysts have increased their price target for Redington 7.3% to ₹350 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Redington's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Redington is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue forecasts, although the latest estimates suggest that Redington will grow in line with the overall market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Redington could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Redington analysts - going out to 2029, and you can see them free on our platform here.

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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.