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 second-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.7% to hit ₹4.2b. Aditya Birla Sun Life AMC reported statutory earnings per share (EPS) ₹8.39, which was a notable 16% above what the analysts had forecast. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Aditya Birla Sun Life AMC

Following last week's earnings report, Aditya Birla Sun Life AMC's seven analysts are forecasting 2025 revenues to be ₹18.7b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 4.3% to ₹32.39. In the lead-up to this report, the analysts had been modelling revenues of ₹18.1b and earnings per share (EPS) of ₹32.36 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

The analysts increased their price target 6.0% to ₹788, perhaps signalling that higher revenues are a strong leading indicator for Aditya Birla Sun Life AMC's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Aditya Birla Sun Life AMC at ₹880 per share, while the most bearish prices it at ₹610. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Aditya Birla Sun Life AMC's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2025 being well below the historical 9.6% 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. 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. We have estimates - from multiple Aditya Birla Sun Life AMC analysts - 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 this 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.