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Analysts Are Updating Their APAR Industries Limited (NSE:APARINDS) Estimates After Its Second-Quarter Results
Investors in APAR Industries Limited (NSE:APARINDS) had a good week, as its shares rose 9.0% to close at ₹15,678 following the release of its quarterly results. Results overall were respectable, with statutory earnings of ₹243 per share roughly in line with what the analysts had forecast. Revenues of ₹69b came in 2.1% ahead of analyst predictions. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, APAR Industries' eight analysts are now forecasting revenues of ₹289.7b in 2027. This would be a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 28% to ₹422. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹287.2b and earnings per share (EPS) of ₹337 in 2027. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
Check out our latest analysis for APAR Industries
There's been no major changes to the consensus price target of ₹15,786, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic APAR Industries analyst has a price target of ₹18,700 per share, while the most pessimistic values it at ₹14,230. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting APAR Industries is an easy business to forecast or the the analysts are all using similar assumptions.
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 APAR Industries' growth to accelerate, with the forecast 28% annualised growth to the end of 2027 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 9.1% annually. So it's clear with the acceleration in growth, APAR Industries is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around APAR Industries' earnings potential next year. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that APAR Industries' revenue is expected to perform better 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.
With that in mind, we wouldn't be too quick to come to a conclusion on APAR Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple APAR Industries analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for APAR Industries (1 shouldn't be ignored!) that we have uncovered.
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