₹878 - That's What Analysts Think Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) Is Worth After These Results

As you might know, Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) recently reported its quarterly numbers. Aditya Birla Sun Life AMC reported ₹4.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹9.59 beat expectations, being 4.2% higher than what the analysts expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Aditya Birla Sun Life AMC from eleven analysts is for revenues of ₹22.0b in 2026. If met, it would imply a credible 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.0% to ₹36.36. Before this earnings report, the analysts had been forecasting revenues of ₹21.4b and earnings per share (EPS) of ₹33.86 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Aditya Birla Sun Life AMC

It will come as no surprise to learn that the analysts have increased their price target for Aditya Birla Sun Life AMC 6.2% to ₹878on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Aditya Birla Sun Life AMC analyst has a price target of ₹1,050 per share, while the most pessimistic values it at ₹670. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that Aditya Birla Sun Life AMC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Aditya Birla Sun Life AMC is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Aditya Birla Sun Life AMC following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Aditya Birla Sun Life AMC. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aditya Birla Sun Life AMC analysts - going out to 2028, 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 Aditya Birla Sun Life AMC 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.