Upgrade: The Latest Revenue Forecasts For Adani Green Energy Limited (NSE:ADANIGREEN)

shareholders a Adani Green Energy Limited (NSE:ADANIGREEN) may be thrilled to learn that the covering analyst has just significantly upgraded its near-term forecasts. The analyst has greatly increased its sales figures, believing that Adani Green Energy will generate significantly more sales than they previously anticipated.

Following the upgrade, Adani Green Energy’s individual analyst current consensus projects sales of £81bn in 2023 which – if achieved – would reflect a significant 22% increase in sales over the last 12 months. Earnings per share are expected to rise 39% to £4.19. Previously, the analyst had forecast £73 billion in revenue and £3.86 in earnings per share (EPS) in 2023. The guidance now seems more optimistic, with a nice increase in sales and a small increase in earnings estimates per share.

Check out our latest analysis for Adani Green Energy

NSEI:ADANIGREEN Earnings and Revenue Growth February 26, 2023

As a result, it might come as a surprise to see that the analyst has cut its target price by 43% to £360, which could indicate that the projected improvement in performance will not last.

These estimates are interesting, but it may be useful to draw some broader lines by seeing how the projections compare to both Adani Green Energy’s past performance and its peers in the same industry. It’s pretty clear that Adani Green Energy’s revenue growth is expected to slow significantly, with revenue expected to grow 22% on a yearly basis through the end of 2023. This compares to a historic growth rate of 33% over the past five years. Contrast that with the other companies in the industry covered by analysts, whose revenue (total) is expected to grow at 9.3% per year. So it’s pretty clear that Adani Green Energy’s revenue growth, while slowing, will still grow faster than the industry itself.

The final result

The biggest takeaway for us from these new estimates is that the analyst has raised its estimates for earnings per share, with improved earnings power expected for this year. Fortunately, the analyst also raised its revenue estimates, and our data shows that revenue is expected to outperform the broader market. Additionally, the target price has been lowered, suggesting that recent news has led to more pessimism about the company’s intrinsic value. With the dramatic improvement in this year’s forecasts, it might be time to take another look at Adani Green Energy.

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Against this background, the company’s long-term earnings development is much more important than next year. We have analyst estimates for Adani Green Energy going up to 2024 and you can view them for free on our platform here.

Of course, to see corporate governance invest large sums in a stock can be just as useful as knowing if analysts are revising their estimates upwards. So you can also search here free List of stocks that insiders buy.

The assessment is complex, but we help to simplify it.

Find out if Adani Green Energy might be over or undervalued by checking out our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

Check out the free analysis

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.


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