Investors in Astral Limited (NSE:ASTRAL) had a good week, as its shares rose 7.8% to close at ₹1,556 following the release of its first-quarter results. Astral reported ₹16b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹4.47 beat expectations, being 2.9% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Astral from 29 analysts is for revenues of ₹77.6b in 2027. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 25% to ₹26.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹76.9b and earnings per share (EPS) of ₹26.79 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Astral
There were no changes to revenue or earnings estimates or the price target of ₹1,736, 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 Astral analyst has a price target of ₹1,950 per share, while the most pessimistic values it at ₹1,450. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Astral is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Astral's past performance and to peers in the same industry. It's clear from the latest estimates that Astral's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Astral is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Astral. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Astral analysts - going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Astral Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.