ASK Automotive Limited (NSE:ASKAUTOLTD) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

ASK Automotive Limited (NSE:ASKAUTOLTD) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to ₹473 in the week after its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹8.9b, statutory earnings were in line with expectations, at ₹12.56 per share. 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.

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Taking into account the latest results, the consensus forecast from ASK Automotive's three analysts is for revenues of ₹39.3b in 2026. This reflects a decent 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 22% to ₹15.85. In the lead-up to this report, the analysts had been modelling revenues of ₹40.6b and earnings per share (EPS) of ₹15.13 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

See our latest analysis for ASK Automotive

There's been no real change to the average price target of ₹540, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ASK Automotive, with the most bullish analyst valuing it at ₹565 and the most bearish at ₹515 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.0% per year. So although ASK Automotive 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ASK Automotive following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at ₹540, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ASK Automotive. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple ASK Automotive analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for ASK Automotive that you should be aware of.

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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.