Hindustan Aeronautics Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Investors in Hindustan Aeronautics Limited (NSE:HAL) had a good week, as its shares rose 7.4% to close at ₹4,920 following the release of its yearly results. Hindustan Aeronautics reported ₹331b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹136 beat expectations, being 8.0% higher than what the analysts expected. 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 most recent consensus for Hindustan Aeronautics from 14 analysts is for revenues of ₹373.9b in 2027. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.6% to ₹147. In the lead-up to this report, the analysts had been modelling revenues of ₹374.4b and earnings per share (EPS) of ₹145 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 Hindustan Aeronautics
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹5,179. 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. The most optimistic Hindustan Aeronautics analyst has a price target of ₹6,300 per share, while the most pessimistic values it at ₹3,200. 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.
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. The analysts are definitely expecting Hindustan Aeronautics' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. So it's clear that despite the acceleration in growth, Hindustan Aeronautics is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hindustan Aeronautics' revenue is expected to 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hindustan Aeronautics analysts - going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Hindustan Aeronautics you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.