Adani Green Energy Limited Just Missed EPS By 8.7%: Here's What Analysts Think Will Happen Next
Adani Green Energy Limited (NSE:ADANIGREEN) just released its latest first-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 4.6% short of analyst estimates at ₹44b, and statutory earnings of ₹5.05 per share missed forecasts by 8.7%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Adani Green Energy's eight analysts are now forecasting revenues of ₹189.5b in 2027. This would be a substantial 39% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 83% to ₹19.05. Before this earnings report, the analysts had been forecasting revenues of ₹183.8b and earnings per share (EPS) of ₹19.32 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.
Check out our latest analysis for Adani Green Energy
The consensus price target increased 7.9% to ₹1,521, with an improved revenue forecast carrying the promise of a more valuable business, in time. 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 Adani Green Energy at ₹1,800 per share, while the most bearish prices it at ₹1,000. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Adani Green Energy's past performance and to peers in the same industry. It's clear from the latest estimates that Adani Green Energy's rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 23% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Adani Green Energy 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Adani Green Energy analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Adani Green Energy has 1 warning sign we think you should be aware of.
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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.