Stock Analysis

Aptus Value Housing Finance India Limited (NSE:APTUS) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

NSEI:APTUS
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Last week saw the newest yearly earnings release from Aptus Value Housing Finance India Limited (NSE:APTUS), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at ₹10.0b, statutory earnings were in line with expectations, at ₹12.21 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Aptus Value Housing Finance India

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NSEI:APTUS Earnings and Revenue Growth May 8th 2024

After the latest results, the 13 analysts covering Aptus Value Housing Finance India are now predicting revenues of ₹12.7b in 2025. If met, this would reflect a sizeable 27% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 23% to ₹15.09. In the lead-up to this report, the analysts had been modelling revenues of ₹12.8b and earnings per share (EPS) of ₹15.06 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹391, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aptus Value Housing Finance India, with the most bullish analyst valuing it at ₹450 and the most bearish at ₹293 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Aptus Value Housing Finance India'shistorical trends, as the 27% annualised revenue growth to the end of 2025 is roughly in line with the 28% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Aptus Value Housing Finance India is forecast to grow substantially faster than its industry.

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 reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Aptus Value Housing Finance India. Long-term earnings power is much more important than next year's profits. We have forecasts for Aptus Value Housing Finance India going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Aptus Value Housing Finance India has 3 warning signs (and 2 which don't sit too well with us) we think you should know about.

Valuation is complex, but we're helping make it simple.

Find out whether Aptus Value Housing Finance India is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.