₹3,632 - That's What Analysts Think AIA Engineering Limited (NSE:AIAENG) Is Worth After These Results

Investors in AIA Engineering Limited (NSE:AIAENG) had a good week, as its shares rose 5.5% to close at ₹3,446 following the release of its second-quarter results. Revenues came in 4.3% below expectations, at ₹10b. Statutory earnings per share were relatively better off, with a per-share profit of ₹29.73 being roughly in line with analyst estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, AIA Engineering's ten analysts currently expect revenues in 2026 to be ₹44.0b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be ₹121, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹44.7b and earnings per share (EPS) of ₹117 in 2026. So the consensus seems to have become somewhat more optimistic on AIA Engineering's earnings potential following these results.

Check out our latest analysis for AIA Engineering

The consensus price target rose 5.1% to ₹3,632, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values AIA Engineering at ₹4,230 per share, while the most bearish prices it at ₹3,078. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that AIA Engineering's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.5% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than AIA Engineering.

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 AIA Engineering following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that AIA Engineering's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for AIA Engineering going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for AIA Engineering 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.