The Intellect Design Arena Limited (NSE:INTELLECT) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders of Intellect Design Arena Limited (NSE:INTELLECT) will be pleased this week, given that the stock price is up 15% to ₹1,198 following its latest quarterly results. It was a workmanlike result, with revenues of ₹7.6b coming in 2.7% ahead of expectations, and statutory earnings per share of ₹7.18, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from Intellect Design Arena's four analysts is for revenues of ₹30.7b in 2026. This reflects a decent 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to ₹32.70. In the lead-up to this report, the analysts had been modelling revenues of ₹29.7b and earnings per share (EPS) of ₹31.15 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Check out our latest analysis for Intellect Design Arena

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹1,136, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values Intellect Design Arena at ₹1,300 per share, while the most bearish prices it at ₹1,034. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Intellect Design Arena's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Intellect Design Arena 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 Intellect Design Arena'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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Intellect Design Arena going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Intellect Design Arena's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.