Analysts Are Updating Their Allied Blenders and Distillers Limited (NSE:ABDL) Estimates After Its First-Quarter Results
As you might know, Allied Blenders and Distillers Limited (NSE:ABDL) recently reported its first-quarter numbers. Revenues came in 3.3% below expectations, at ₹9.8b. Statutory earnings per share were relatively better off, with a per-share profit of ₹8.16 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Allied Blenders and Distillers' eleven analysts is for revenues of ₹44.6b in 2027. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 45% to ₹11.43. In the lead-up to this report, the analysts had been modelling revenues of ₹44.8b and earnings per share (EPS) of ₹11.69 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Allied Blenders and Distillers
The consensus price target held steady at ₹721, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Allied Blenders and Distillers at ₹800 per share, while the most bearish prices it at ₹650. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Allied Blenders and Distillers is an easy business to forecast or the the analysts are all using similar assumptions.
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. It's clear from the latest estimates that Allied Blenders and Distillers' rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.3% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Allied Blenders and Distillers to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Allied Blenders and Distillers going out to 2029, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Allied Blenders and Distillers , and understanding them should be part of your investment process.
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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.