Analysts Are Upgrading APAR Industries Limited (NSE:APARINDS) After Its Latest Results
The first-quarter results for APAR Industries Limited (NSE:APARINDS) were released last week, making it a good time to revisit its performance. Results overall were respectable, with statutory earnings of ₹243 per share roughly in line with what the analysts had forecast. Revenues of ₹66b came in 3.7% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from APAR Industries' eight analysts is for revenues of ₹286.9b in 2027. This would reflect a decent 18% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 16% to ₹340. Before this earnings report, the analysts had been forecasting revenues of ₹273.2b and earnings per share (EPS) of ₹298 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.
See our latest analysis for APAR Industries
It will come as no surprise to learn that the analysts have increased their price target for APAR Industries 12% to ₹15,161on the back of these upgrades. 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 APAR Industries at ₹15,950 per share, while the most bearish prices it at ₹14,230. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting APAR Industries is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 8.7% annually. So it's clear that not only is revenue growth expected to be maintained, but APAR Industries is expected to grow meaningfully faster 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 APAR Industries following these results. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for APAR Industries going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for APAR Industries 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.