GMR Airports Infrastructure Limited (NSE:GMRINFRA) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹86.67

Shareholders might have noticed that GMR Airports Infrastructure Limited (NSE:GMRINFRA) filed its quarterly result this time last week. The early response was not positive, with shares down 3.6% to ₹95.87 in the past week. Revenues of ₹24b came in a modest 4.2% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of ₹0.23 coming in a substantial 54% smaller than what the analysts had 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for GMR Airports Infrastructure

Taking into account the latest results, the consensus forecast from GMR Airports Infrastructure's three analysts is for revenues of ₹103.1b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 43% to ₹0.53. Before this earnings announcement, the analysts had been modelling revenues of ₹103.8b and losses of ₹0.83 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a considerable decrease in losses per share in particular.

The average price target rose 6.6% to ₹86.67, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values GMR Airports Infrastructure at ₹106 per share, while the most bearish prices it at ₹69.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting GMR Airports Infrastructure's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that GMR Airports Infrastructure is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 GMR Airports Infrastructure analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for GMR Airports Infrastructure (1 is concerning!) that you need to be mindful 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.