Here's What Analysts Are Forecasting For Aavas Financiers Limited (NSE:AAVAS) After Its Annual Results

It's been a good week for Aavas Financiers Limited (NSE:AAVAS) shareholders, because the company has just released its latest yearly results, and the shares gained 4.0% to ₹1,610. The result was positive overall - although revenues of ₹12b were in line with what the analysts predicted, Aavas Financiers surprised by delivering a statutory profit of ₹61.93 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Aavas Financiers

Following the latest results, Aavas Financiers' 14 analysts are now forecasting revenues of ₹14.4b in 2025. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 21% to ₹75.28. Before this earnings report, the analysts had been forecasting revenues of ₹14.3b and earnings per share (EPS) of ₹74.91 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹1,796, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Aavas Financiers analyst has a price target of ₹2,100 per share, while the most pessimistic values it at ₹1,435. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Aavas Financiers'historical trends, as the 23% annualised revenue growth to the end of 2025 is roughly in line with the 20% 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 12% per year. So it's pretty clear that Aavas Financiers is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,796, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Aavas Financiers. Long-term earnings power is much more important than next year's profits. We have forecasts for Aavas Financiers going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Aavas Financiers 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.