₹3,700 - That's What Analysts Think Ethos Limited (NSE:ETHOSLTD) Is Worth After These Results

Investors in Ethos Limited (NSE:ETHOSLTD) had a good week, as its shares rose 8.0% to close at ₹3,379 following the release of its first-quarter results. Revenues of ₹2.7b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹9.32, missing estimates by 4.9%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Ethos

Following the latest results, Ethos' twin analysts are now forecasting revenues of ₹12.5b in 2025. This would be a meaningful 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 21% to ₹43.40. In the lead-up to this report, the analysts had been modelling revenues of ₹12.5b and earnings per share (EPS) of ₹44.95 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 16% to ₹3,700, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 23% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So it's pretty clear that Ethos is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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 analyst estimates for Ethos going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Ethos 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.