Revenue Beat: ASK Automotive Limited Beat Analyst Estimates By 15%
ASK Automotive Limited (NSE:ASKAUTOLTD) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 15% higher than the analysts had forecast, at ₹14b, while EPS of ₹4.32 beat analyst models by 5.4%. 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. 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 consensus forecast from ASK Automotive's six analysts is for revenues of ₹52.6b in 2027. This reflects a solid 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to ₹18.35. Before this earnings report, the analysts had been forecasting revenues of ₹48.2b and earnings per share (EPS) of ₹16.27 in 2027. So it seems there's been a definite increase in optimism about ASK Automotive's future following the latest results, with a nice gain to the earnings per share forecasts in particular.
See our latest analysis for ASK Automotive
Despite these upgrades,the analysts have not made any major changes to their price target of ₹570, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values ASK Automotive at ₹710 per share, while the most bearish prices it at ₹495. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of ASK Automotive'shistorical trends, as the 18% annualised revenue growth to the end of 2027 is roughly in line with the 17% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that ASK Automotive is forecast to grow substantially 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 ASK Automotive's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹570, with the latest estimates not enough to have an impact on their price targets.
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 ASK Automotive going out to 2029, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with ASK Automotive .
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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.