One Anand Rathi Wealth Limited (NSE:ANANDRATHI) Analyst Just Slashed Their Estimates By A Noteworthy 10%

The analyst covering Anand Rathi Wealth Limited (NSE:ANANDRATHI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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After the downgrade, the one analyst covering Anand Rathi Wealth is now predicting revenues of ₹11b in 2026. If met, this would reflect a solid 15% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 23% to ₹44.30. Prior to this update, the analyst had been forecasting revenues of ₹13b and earnings per share (EPS) of ₹47.60 in 2026. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a small dip in EPS estimates to boot.

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The analyst made no major changes to their price target of ₹2,025, suggesting the downgrades are not expected to have a long-term impact on Anand Rathi Wealth's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Anand Rathi Wealth's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while Anand Rathi Wealth's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Anand Rathi Wealth. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Anand Rathi Wealth after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Anand Rathi Wealth going out as far as 2027, and you can see them free on our platform here.

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