Birla Corporation Limited (NSE:BIRLACORPN) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Birla Corporation Limited (NSE:BIRLACORPN) had a good week, as its shares rose 7.2% to close at ₹1,546 following the release of its full-year results. Revenues of ₹97b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹54.61, missing estimates by 4.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Birla after the latest results.

View our latest analysis for Birla

Taking into account the latest results, the most recent consensus for Birla from 13 analysts is for revenues of ₹103.6b in 2025. If met, it would imply a modest 6.3% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 44% to ₹78.52. Before this earnings report, the analysts had been forecasting revenues of ₹105.2b and earnings per share (EPS) of ₹83.13 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹1,826, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Birla, with the most bullish analyst valuing it at ₹2,070 and the most bearish at ₹1,336 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Birla's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 8.3% 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 revenue shrink 5.1% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Birla is still expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Birla. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at ₹1,826, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Birla. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Birla analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Birla that we have uncovered.

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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.