Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to ₹889 in the week after its latest quarterly results. Aditya Birla Sun Life AMC reported in line with analyst predictions, delivering revenues of ₹4.8b and statutory earnings per share of ₹7.60, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the twelve analysts covering Aditya Birla Sun Life AMC provided consensus estimates of ₹20.9b revenue in 2027, which would reflect a discernible 2.4% decline over the past 12 months. Per-share earnings are expected to rise 8.0% to ₹36.85. Before this earnings report, the analysts had been forecasting revenues of ₹20.0b and earnings per share (EPS) of ₹38.09 in 2027. So it's pretty clear consensus is mixed on Aditya Birla Sun Life AMC after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

See our latest analysis for Aditya Birla Sun Life AMC

There's been no major changes to the price target of ₹1,111, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 Aditya Birla Sun Life AMC, with the most bullish analyst valuing it at ₹1,230 and the most bearish at ₹1,005 per share. This is a very narrow spread of estimates, implying either that Aditya Birla Sun Life AMC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aditya Birla Sun Life AMC's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 4.7% annualised decline to the end of 2027. That is a notable change from historical growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that Aditya Birla Sun Life AMC's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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.

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. We have estimates - from multiple Aditya Birla Sun Life AMC analysts - going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Aditya Birla Sun Life AMC that you should be aware of.

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