Apollo Pipes Limited (NSE:APOLLOPIPE) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Investors in Apollo Pipes Limited (NSE:APOLLOPIPE) had a good week, as its shares rose 3.4% to close at ₹398 following the release of its annual results. Revenues of ₹12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹7.74, missing estimates by 2.0%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, Apollo Pipes' three analysts currently expect revenues in 2026 to be ₹11.8b, approximately in line with the last 12 months. Per-share earnings are expected to soar 60% to ₹11.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹14.6b and earnings per share (EPS) of ₹13.50 in 2026. Indeed, we can see that the analysts are a lot more bearish about Apollo Pipes' prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Apollo Pipes

Despite the cuts to forecast earnings, there was no real change to the ₹472 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic Apollo Pipes analyst has a price target of ₹540 per share, while the most pessimistic values it at ₹430. This is a very narrow spread of estimates, implying either that Apollo Pipes is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2026. This indicates a significant reduction from annual growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Apollo Pipes is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Apollo Pipes. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Apollo Pipes analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Apollo Pipes is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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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.