Last week, you might have seen that AWL Agri Business Limited (NSE:AWL) released its quarterly result to the market. The early response was not positive, with shares down 8.2% to ₹164 in the past week. Results overall were respectable, with statutory earnings of ₹8.05 per share roughly in line with what the analysts had forecast. Revenues of ₹222b came in 4.4% ahead of analyst predictions. 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.
After the latest results, the three analysts covering AWL Agri Business are now predicting revenues of ₹869.5b in 2027. If met, this would reflect a satisfactory 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.2% to ₹9.62. Before this earnings report, the analysts had been forecasting revenues of ₹851.4b and earnings per share (EPS) of ₹9.56 in 2027. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
Check out our latest analysis for AWL Agri Business
Even though revenue forecasts increased, the consensus price target 5.3% to ₹256, perhaps suggesting thatthe analysts have become more pessimistic about the lack of earnings growth. 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. There are some variant perceptions on AWL Agri Business, with the most bullish analyst valuing it at ₹295 and the most bearish at ₹165 per share. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting AWL Agri Business' growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AWL Agri Business is expected to grow at about the same rate as the wider industry.
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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of AWL Agri Business' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on AWL Agri Business. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple AWL Agri Business analysts - going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for AWL Agri Business that you need to be mindful of.
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