Allcargo Logistics Limited Just Recorded A 11% Revenue Beat: Here's What Analysts Think

Last week, you might have seen that Allcargo Logistics Limited (NSE:ALLCARGO) released its second-quarter result to the market. The early response was not positive, with shares down 2.4% to ₹54.03 in the past week. It was a mildly positive result, with revenues exceeding expectations at ₹43b, while statutory earnings per share (EPS) of ₹1.52 were in line with analyst forecasts. 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 Allcargo Logistics after the latest results.

View our latest analysis for Allcargo Logistics

Taking into account the latest results, the consensus forecast from Allcargo Logistics' three analysts is for revenues of ₹154.9b in 2025. This reflects a credible 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 147% to ₹1.10. In the lead-up to this report, the analysts had been modelling revenues of ₹141.7b and earnings per share (EPS) of ₹2.10 in 2025. So it's pretty clear the analysts have mixed opinions on Allcargo Logistics after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.

There's been no major changes to the price target of ₹86.67, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' 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. The most optimistic Allcargo Logistics analyst has a price target of ₹105 per share, while the most pessimistic values it at ₹75.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Allcargo Logistics' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this to the 41 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. So it's pretty clear that, while Allcargo Logistics' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Allcargo Logistics will grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Allcargo Logistics. Long-term earnings power is much more important than next year's profits. We have forecasts for Allcargo Logistics 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 3 warning signs for Allcargo Logistics 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.