Earnings Update: Here's Why Analysts Just Lifted Their ASK Automotive Limited (NSE:ASKAUTOLTD) Price Target To ₹528

Investors in ASK Automotive Limited (NSE:ASKAUTOLTD) had a good week, as its shares rose 3.0% to close at ₹450 following the release of its quarterly results. Results overall were respectable, with statutory earnings of ₹8.81 per share roughly in line with what the analysts had forecast. Revenues of ₹9.2b came in 2.2% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for ASK Automotive

Taking into account the latest results, the consensus forecast from ASK Automotive's three analysts is for revenues of ₹42.1b in 2026. This reflects a meaningful 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 35% to ₹16.33. Before this earnings report, the analysts had been forecasting revenues of ₹41.6b and earnings per share (EPS) of ₹16.43 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 9.8% to ₹528despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of ASK Automotive's earnings by assigning a price premium. 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. There are some variant perceptions on ASK Automotive, with the most bullish analyst valuing it at ₹535 and the most bearish at ₹515 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 15% annualised revenue growth to the end of 2026 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that ASK Automotive is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ASK Automotive going out to 2027, 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.