Celebrations may be in order for Apar Industries Limited (NSE:APARINDS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Apar Industries will make substantially more sales than they'd previously expected.
After this upgrade, Apar Industries' two analysts are now forecasting revenues of ₹101b in 2023. This would be a substantial 23% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹90b in 2023. It looks like there's been a clear increase in optimism around Apar Industries, given the solid increase in revenue forecasts.
There was no particular change to the consensus price target of ₹817, with Apar Industries' latest outlook seemingly not enough to result in a change of valuation. 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 Apar Industries, with the most bullish analyst valuing it at ₹802 and the most bearish at ₹789 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Apar Industries is an easy business to forecast or the underlying assumptions are obvious.
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. It's clear from the latest estimates that Apar Industries' rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Apar Industries is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Apar Industries next year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Apar Industries.
Looking for more information? We have analyst estimates for Apar Industries going out to 2024, and you can see them free on our platform here.
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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.