Broker Revenue Forecast for Apar Industries Limited (NSE:APARINDS) Rises

Celebrations can be appropriate for Apar Industries Limited (NSE:APARINDS) shareholders, with analysts providing a significant update to their statutory estimates for the company. Analysts have sharply raised their revenue figures on the expectation that Apar Industries will make significantly more sales than they had previously expected.

After this upgrade, the two analysts at Apar Industries now forecast revenue of ₹101 billion in 2023. This would represent a substantial 23% improvement in sales over the last 12 months. Prior to the latest estimates, analysts predicted revenue of ₹90 billion in 2023. It seems there has been a marked increase in optimism around Apar Industries given the solid increase in revenue forecast.

See our latest analysis for Apar Industries

NSEI: APARINDS Earnings and Revenue Growth April 9, 2022

There has been no particular change in the consensus price target of ₹817, with the latest outlook from Apar Industries not appearing to be sufficient to prompt a change in valuation. This is not the only conclusion we can draw from this data, however, as some investors also like to consider the discrepancy in estimates when evaluating analyst price targets. There are variant perceptions on Apar Industries, with the most bullish analyst pricing it at ₹802 and the most bearish at ₹789 per share. Even so, with a relatively close group of estimates, it seems analysts are quite confident in their valuations, suggesting that Apar Industries is an easy-to-predict company or that the underlying assumptions are obvious.

Looking now at the big picture, one way to understand these forecasts is to see how they compare to past performance and industry growth estimates. It is clear from the latest estimates that Apar Industries’ growth rate is set to accelerate significantly, with an annualized revenue growth forecast of 18% through the end of 2023 significantly faster than its historical growth of 7 .8% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow revenue by 4.8% annually. Taking into account the expected acceleration in revenues, it is quite clear that Apar Industries should grow much faster than its industry.

The essential

The highlight for us was that analysts raised their revenue forecasts for Apar Industries next year. Analysts also expect revenue to grow faster than the broader market. Given that analysts seem to be expecting a substantial improvement in the sales pipeline, now might be a good time to take another look at Apar Industries.

Looking for more information? We have analyst estimates for Apar Industries going out to 2024, and you can view them for free on our platform here.

Another way to search for interesting businesses that might be reach an inflection point is to track whether management is buying or selling, with our free list of growing companies insiders are buying.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Sallie R. Loera