Stock Analysis

Analysts' Revenue Estimates For Angel One Limited (NSE:ANGELONE) Are Surging Higher

NSEI:ANGELONE
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Celebrations may be in order for Angel One Limited (NSE:ANGELONE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Angel One's seven analysts is for revenues of ₹45b in 2025 which - if met - would reflect a decent 8.3% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 30% to ₹163. Prior to this update, the analysts had been forecasting revenues of ₹39b and earnings per share (EPS) of ₹159 in 2025. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Angel One

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NSEI:ANGELONE Earnings and Revenue Growth April 25th 2024

Despite these upgrades, the analysts have not made any major changes to their price target of ₹3,587, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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 Angel One's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.3% growth on an annualised basis. This is compared to a historical growth rate of 35% 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 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Angel One is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Angel One.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Angel One analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.