Results: Aditya Birla Sun Life AMC Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Aditya Birla Sun Life AMC Limited (NSE:ABSLAMC) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.4% to hit ₹3.4b. Aditya Birla Sun Life AMC also reported a statutory profit of ₹7.25, which was an impressive 25% above what the analysts had forecast. 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.

See our latest analysis for Aditya Birla Sun Life AMC

Taking into account the latest results, the current consensus from Aditya Birla Sun Life AMC's eight analysts is for revenues of ₹16.7b in 2025. This would reflect a notable 9.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 7.6% to ₹26.43. Before this earnings report, the analysts had been forecasting revenues of ₹15.8b and earnings per share (EPS) of ₹25.74 in 2025. 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.

It will come as no surprise to learn that the analysts have increased their price target for Aditya Birla Sun Life AMC 5.3% to ₹504on 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. The most optimistic Aditya Birla Sun Life AMC analyst has a price target of ₹562 per share, while the most pessimistic values it at ₹425. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Aditya Birla Sun Life AMC's growth to accelerate, with the forecast 7.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.0% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Aditya Birla Sun Life AMC is expected to grow slower than the wider industry.

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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Aditya Birla Sun Life AMC going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Aditya Birla Sun Life AMC that you need to be mindful 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.