The analysts might have been a bit too bullish on Amber Enterprises India Limited (NSE:AMBER), given that the company fell short of expectations when it released its first-quarter results last week. Unfortunately, Amber Enterprises India delivered a serious earnings miss. Revenues of ₹39b were 10% below expectations, and statutory earnings per share of ₹6.33 missed estimates by 80%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Amber Enterprises India after the latest results.
Following the latest results, Amber Enterprises India's 25 analysts are now forecasting revenues of ₹149.2b in 2027. This would be a meaningful 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 318% to ₹114. Before this earnings report, the analysts had been forecasting revenues of ₹152.9b and earnings per share (EPS) of ₹115 in 2027. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
Check out our latest analysis for Amber Enterprises India
The average price target was steady at ₹8,492even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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. Currently, the most bullish analyst values Amber Enterprises India at ₹9,770 per share, while the most bearish prices it at ₹6,879. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Amber Enterprises India shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Amber Enterprises India's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Amber Enterprises India'shistorical trends, as the 25% annualised revenue growth to the end of 2027 is roughly in line with the 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Amber Enterprises India is expected to maintain its revenue growth rate, it's definitely expected 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. They also downgraded Amber Enterprises India's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Amber Enterprises India going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Amber Enterprises India that you should be aware of.
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.