Arvind Limited (NSE:ARVIND) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹449

It's been a pretty great week for Arvind Limited (NSE:ARVIND) shareholders, with its shares surging 15% to ₹363 in the week since its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of ₹78b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit ₹12.86 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Arvind

Taking into account the latest results, the consensus forecast from Arvind's six analysts is for revenues of ₹90.0b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 50% to ₹19.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹91.2b and earnings per share (EPS) of ₹19.54 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.7% to ₹449. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Arvind, with the most bullish analyst valuing it at ₹500 and the most bearish at ₹375 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Arvind's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Arvind is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Arvind 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 2 warning signs for Arvind 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.