Birlasoft Limited (NSE:BSOFT) Just Reported, And Analysts Assigned A ₹330 Price Target
Investors in Birlasoft Limited (NSE:BSOFT) had a good week, as its shares rose 9.8% to close at ₹306 following the release of its first-quarter results. It was a credible result overall, with revenues of ₹14b and statutory earnings per share of ₹5.70 both in line with analyst estimates, showing that Birlasoft is executing in line with expectations. 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.
After the latest results, the 14 analysts covering Birlasoft are now predicting revenues of ₹55.5b in 2027. If met, this would reflect a satisfactory 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to ₹22.59. Before this earnings report, the analysts had been forecasting revenues of ₹55.4b and earnings per share (EPS) of ₹21.80 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Birlasoft
The average the analysts price target fell 6.4% to ₹330, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. 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 Birlasoft, with the most bullish analyst valuing it at ₹419 and the most bearish at ₹247 per share. 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 Birlasoft's past performance and to peers in the same industry. The analysts are definitely expecting Birlasoft's growth to accelerate, with the forecast 3.7% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.1% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Birlasoft is expected to grow slower than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Birlasoft following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Birlasoft's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Birlasoft. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Birlasoft going out to 2029, and you can see them free on our platform here..
Even so, be aware that Birlasoft is showing 1 warning sign in our investment analysis , you should know about...
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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.