Asian Paints Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Asian Paints Limited (NSE:ASIANPAINT) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Asian Paints beat revenue expectations by 2.1%, at ₹100b. Statutory earnings per share (EPS) came in at ₹11.14, some 9.2% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Asian Paints from 34 analysts is for revenues of ₹417.2b in 2027. If met, it would imply a reasonable 8.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.1% to ₹54.55. In the lead-up to this report, the analysts had been modelling revenues of ₹411.3b and earnings per share (EPS) of ₹54.55 in 2027. 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 Asian Paints
The consensus price target fell 7.8% to ₹2,752, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Asian Paints at ₹3,300 per share, while the most bearish prices it at ₹1,925. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Asian Paints' growth to accelerate, with the forecast 17% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Asian Paints 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Asian Paints. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Asian Paints 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 1 warning sign for Asian Paints that we have uncovered.
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