Intellect Design Arena Limited (NSE:INTELLECT) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹913

Intellect Design Arena Limited (NSE:INTELLECT) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to ₹856 in the week after its latest third-quarter results. The result was positive overall - although revenues of ₹6.1b were in line with what the analysts predicted, Intellect Design Arena surprised by delivering a statutory profit of ₹4.94 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Intellect Design Arena

Following the latest results, Intellect Design Arena's four analysts are now forecasting revenues of ₹29.4b in 2026. This would be a major 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 71% to ₹33.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹28.5b and earnings per share (EPS) of ₹33.97 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

The analysts increased their price target 5.5% to ₹913, perhaps signalling that higher revenues are a strong leading indicator for Intellect Design Arena's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Intellect Design Arena at ₹1,000 per share, while the most bearish prices it at ₹800. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Intellect Design Arena is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Intellect Design Arena's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Intellect Design Arena is expected to grow at about the same rate as the wider 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Intellect Design Arena will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Intellect Design Arena analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Intellect Design Arena you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.