Stock Analysis

Amber Enterprises India Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NSEI:AMBER
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It's been a good week for Amber Enterprises India Limited (NSE:AMBER) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.5% to ₹4,387. It was a pretty mixed result, with revenues beating expectations to hit ₹24b. Statutory earnings fell 8.9% short of analyst forecasts, reaching ₹21.40 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Amber Enterprises India

earnings-and-revenue-growth
NSEI:AMBER Earnings and Revenue Growth July 30th 2024

Taking into account the latest results, the current consensus from Amber Enterprises India's 20 analysts is for revenues of ₹84.3b in 2025. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 57% to ₹74.08. In the lead-up to this report, the analysts had been modelling revenues of ₹83.5b and earnings per share (EPS) of ₹75.01 in 2025. 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 6.4% to ₹4,583despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Amber Enterprises India's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Amber Enterprises India at ₹5,553 per share, while the most bearish prices it at ₹3,278. 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.

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 Amber Enterprises India'shistorical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although Amber Enterprises India is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have estimates - from multiple Amber Enterprises India analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Amber Enterprises India that we have uncovered.

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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.