Last week, you might have seen that ICRA Limited (NSE:ICRA) released its quarterly result to the market. The early response was not positive, with shares down 3.8% to ₹4,301 in the past week. ICRA reported in line with analyst predictions, delivering revenues of ₹1.8b and statutory earnings per share of ₹54.07, suggesting the business is executing well and in line with its plan. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from ICRA’s dual analysts is for revenues of ₹7.13b in 2027. This would reflect a satisfactory 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.0% to ₹220. Before this earnings report, the analysts had been forecasting revenues of ₹7.21b and earnings per share (EPS) of ₹227 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for ICRA
The consensus price target held steady at ₹6,363, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that ICRA’s revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2027 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like ICRA is forecast to grow at about the same rate as the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹6,363, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we’ve spotted 2 warning signs for ICRA you should be aware of.
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