Aarti Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Aarti Industries Limited (NSE:AARTIIND) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 8.9% to hit ₹24b. Aarti Industries reported statutory earnings per share (EPS) ₹4.26, which was a notable 18% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 consensus forecast from Aarti Industries' 20 analysts is for revenues of ₹96.8b in 2027. This reflects a modest 7.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹14.71, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹97.2b and earnings per share (EPS) of ₹14.72 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.
See our latest analysis for Aarti Industries
There were no changes to revenue or earnings estimates or the price target of ₹532, suggesting that the company has met expectations in its recent result. 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 Aarti Industries, with the most bullish analyst valuing it at ₹621 and the most bearish at ₹366 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Aarti Industries' rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, Aarti Industries is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Aarti Industries. 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 Aarti Industries 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 Aarti Industries that we have uncovered.
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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.