Allied Blenders and Distillers Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Allied Blenders and Distillers Limited (NSE:ABDL) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to ₹643 in the week after its latest second-quarter results. The result was positive overall - although revenues of ₹9.9b were in line with what the analysts predicted, Allied Blenders and Distillers surprised by delivering a statutory profit of ₹2.23 per share, modestly greater than expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Allied Blenders and Distillers from eight analysts is for revenues of ₹40.4b in 2026. If met, it would imply a meaningful 17% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.6% to ₹9.70. Before this earnings report, the analysts had been forecasting revenues of ₹40.1b and earnings per share (EPS) of ₹9.25 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Allied Blenders and Distillers

The consensus price target rose 6.8% to ₹638, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Allied Blenders and Distillers analyst has a price target of ₹800 per share, while the most pessimistic values it at ₹588. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Allied Blenders and Distillers shareholders.

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. The analysts are definitely expecting Allied Blenders and Distillers' growth to accelerate, with the forecast 37% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.3% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Allied Blenders and Distillers to grow faster 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 Allied Blenders and Distillers following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Allied Blenders and Distillers analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Allied Blenders and Distillers (1 can't be ignored!) that you should be aware 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.