Hindalco Industries Limited Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next
It's been a good week for Hindalco Industries Limited (NSE:HINDALCO) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.9% to ₹1,054. It looks like a credible result overall - although revenues of ₹848b were in line with what the analysts predicted, Hindalco Industries surprised by delivering a statutory profit of ₹31.51 per share, a notable 18% above 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.
Taking into account the latest results, the current consensus from Hindalco Industries' 29 analysts is for revenues of ₹3.31t in 2027. This would reflect a decent 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 50% to ₹111. Before this earnings report, the analysts had been forecasting revenues of ₹3.29t and earnings per share (EPS) of ₹103 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Hindalco Industries
There's been no major changes to the consensus price target of ₹1,153, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Hindalco Industries, with the most bullish analyst valuing it at ₹1,442 and the most bearish at ₹933 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hindalco Industries' past performance and to peers in the same industry. The analysts are definitely expecting Hindalco Industries' growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.0% per annum 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 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hindalco Industries is expected to grow much faster than its 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 Hindalco Industries following these results. 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. 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 Hindalco 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 Hindalco Industries going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Hindalco Industries (1 shouldn't be ignored!) that you need to take into consideration.
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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.