Earnings Update: Here's Why Analysts Just Lifted Their Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) Price Target To ₹552

Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) just released its latest full-year results and things are looking bullish. The company beat expectations with revenues of ₹16b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹27.02, 3.3% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Aditya Birla Sun Life AMC

After the latest results, the seven analysts covering Aditya Birla Sun Life AMC are now predicting revenues of ₹17.1b in 2025. If met, this would reflect a satisfactory 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.6% to ₹28.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹17.1b and earnings per share (EPS) of ₹26.99 in 2025. So the consensus seems to have become somewhat more optimistic on Aditya Birla Sun Life AMC's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to ₹552. 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 ₹640 per share, while the most pessimistic values it at ₹475. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 would highlight that Aditya Birla Sun Life AMC's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2025 being well below the historical 7.1% p.a. growth over the last 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 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Aditya Birla Sun Life AMC's revenue is expected to perform worse 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. We have forecasts for Aditya Birla Sun Life AMC going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Aditya Birla Sun Life AMC , and understanding it should be part of your investment process.

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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.