Analysts Have Made A Financial Statement On Indus Towers Limited's (NSE:INDUSTOWER) First-Quarter Report
Last week, you might have seen that Indus Towers Limited (NSE:INDUSTOWER) released its first-quarter result to the market. The early response was not positive, with shares down 5.6% to ₹382 in the past week. Revenues of ₹84b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹6.62, missing estimates by 3.6%. 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.
Following the latest results, Indus Towers' 23 analysts are now forecasting revenues of ₹345.7b in 2027. This would be an okay 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.2% to ₹28.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹344.1b and earnings per share (EPS) of ₹28.68 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.
Check out our latest analysis for Indus Towers
There were no changes to revenue or earnings estimates or the price target of ₹443, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Indus Towers analyst has a price target of ₹565 per share, while the most pessimistic values it at ₹345. 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 Indus Towers' past performance and to peers in the same industry. The analysts are definitely expecting Indus Towers' growth to accelerate, with the forecast 7.0% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Indus Towers to grow faster than the wider industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹443, with the latest estimates not enough to have an impact on their price targets.
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 Indus Towers going out to 2029, and you can see them free on our platform here..
Even so, be aware that Indus Towers is showing 2 warning signs 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.