It’s been a good week for Aditya Birla Fashion and Retail Limited (NSE:ABFRL) shareholders, because the company has just released its latest annual results, and the shares gained 4.5% to ₹293. The results overall were pretty much dead in line with analyst forecasts; revenues were ₹142b and statutory losses were ₹6.52 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Aditya Birla Fashion and Retail
Taking into account the latest results, the most recent consensus for Aditya Birla Fashion and Retail from 20 analysts is for revenues of ₹162.8b in 2025. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 51% to ₹3.05. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹163.7b and losses of ₹3.07 per share in 2025.
The consensus price target rose 12% to ₹266, with the analysts increasing their valuations as the business executes in line with forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. Currently, the most bullish analyst values Aditya Birla Fashion and Retail at ₹400 per share, while the most bearish prices it at ₹200. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 14% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 21% annually. So it’s pretty clear that Aditya Birla Fashion and Retail is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Aditya Birla Fashion and Retail’s revenue is expected to perform worse than the wider 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. At Simply Wall St, we have a full range of analyst estimates for Aditya Birla Fashion and Retail going out to 2027, and you can see them free on our platform here..
You still need to take note of risks, for example – Aditya Birla Fashion and Retail has 1 warning sign we think you should be aware of.
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Find out whether Aditya Birla Fashion and Retail is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.