Aditya Birla Sun Life AMC Limited Just Beat Revenue Estimates By 17%

Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) just released its quarterly report and things are looking bullish. Aditya Birla Sun Life AMC delivered a significant beat with revenue hitting ₹4.8b and statutory EPS reaching ₹8.16, both beating estimates by more than 10%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aditya Birla Sun Life AMC after the latest results.

View our latest analysis for Aditya Birla Sun Life AMC

Taking into account the latest results, the most recent consensus for Aditya Birla Sun Life AMC from six analysts is for revenues of ₹18.0b in 2025. If met, it would imply a reasonable 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.1% to ₹30.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.9b and earnings per share (EPS) of ₹29.00 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Aditya Birla Sun Life AMC 8.5% to ₹698on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Aditya Birla Sun Life AMC, with the most bullish analyst valuing it at ₹820 and the most bearish at ₹520 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 2025 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aditya Birla Sun Life AMC.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Aditya Birla Sun Life AMC's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than 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.

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. At Simply Wall St, we have a full range of analyst estimates for Aditya Birla Sun Life AMC going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Aditya Birla Sun Life AMC .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com