Adani Wilmar Limited (NSE:AWL) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

The second-quarter results for Adani Wilmar Limited (NSE:AWL) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of ₹145b and statutory earnings per share of ₹1.14 both in line with analyst estimates, showing that Adani Wilmar is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Adani Wilmar

After the latest results, the five analysts covering Adani Wilmar are now predicting revenues of ₹604.2b in 2025. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to ₹8.50. In the lead-up to this report, the analysts had been modelling revenues of ₹562.5b and earnings per share (EPS) of ₹7.66 in 2025. So it seems there's been a definite increase in optimism about Adani Wilmar's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of ₹391, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Adani Wilmar, with the most bullish analyst valuing it at ₹455 and the most bearish at ₹335 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Adani Wilmar's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.1% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Adani Wilmar is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Adani Wilmar's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Adani Wilmar going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.