The Indigo Paints Limited (NSE:INDIGOPNTS) First-Quarter Results Are Out And Analysts Have Published New Forecasts
It's been a good week for Indigo Paints Limited (NSE:INDIGOPNTS) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.5% to ₹1,149. Indigo Paints reported in line with analyst predictions, delivering revenues of ₹3.7b and statutory earnings per share of ₹30.34, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Indigo Paints' eight analysts are now forecasting revenues of ₹16.8b in 2027. This would be a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.9% to ₹36.74. Before this earnings report, the analysts had been forecasting revenues of ₹16.6b and earnings per share (EPS) of ₹37.10 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Indigo Paints
There were no changes to revenue or earnings estimates or the price target of ₹1,221, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Indigo Paints, with the most bullish analyst valuing it at ₹1,515 and the most bearish at ₹900 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Indigo Paints' rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% 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 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Indigo Paints to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,221, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Indigo Paints. Long-term earnings power is much more important than next year's profits. We have forecasts for Indigo Paints going out to 2029, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.