APAR Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a pretty great week for APAR Industries Limited (NSE:APARINDS) shareholders, with its shares surging 15% to ₹6,302 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of ₹40b were what the analysts expected, APAR Industries surprised by delivering a (statutory) profit of ₹56.62 per share, an impressive 23% above what was forecast. 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 APAR Industries after the latest results.

See our latest analysis for APAR Industries

Taking into account the latest results, the consensus forecast from APAR Industries' four analysts is for revenues of ₹187.2b in 2025. This reflects a meaningful 18% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹210, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹182.9b and earnings per share (EPS) of ₹205 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 19% to ₹5,885per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic APAR Industries analyst has a price target of ₹6,890 per share, while the most pessimistic values it at ₹4,879. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.1% per year. So it's pretty clear that APAR Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around APAR Industries' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for APAR Industries going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for APAR Industries 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.