Adani Energy Solutions Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Adani Energy Solutions Limited (NSE:ADANIENSOL) just released its first-quarter report and things are looking bullish. Adani Energy Solutions delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹97b-19% above indicated-and₹9.57-43% above forecasts- respectively 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Adani Energy Solutions after the latest results.
Taking into account the latest results, the current consensus from Adani Energy Solutions' eight analysts is for revenues of ₹420.6b in 2027. This would reflect a huge 38% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 47% to ₹35.77. In the lead-up to this report, the analysts had been modelling revenues of ₹389.7b and earnings per share (EPS) of ₹25.50 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.
See our latest analysis for Adani Energy Solutions
It will come as no surprise to learn that the analysts have increased their price target for Adani Energy Solutions 15% to ₹1,748on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Adani Energy Solutions, with the most bullish analyst valuing it at ₹2,060 and the most bearish at ₹1,434 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.
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 Adani Energy Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 54% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 23% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Adani Energy Solutions is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Adani Energy Solutions' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Adani Energy Solutions 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 Adani Energy Solutions 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.