Shareholders of Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) will be pleased this week, given that the stock price is up 13% to ₹477 following its latest quarterly results. Results were roughly in line with estimates, with revenues of ₹8.5b and statutory earnings per share of ₹29.12. This is an important time for investors, as they can track a company’s performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Following the latest results, Dalmia Bharat Sugar and Industries’ solitary analyst are now forecasting revenues of ₹40.1b in 2027. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 58% to ₹49.10. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹39.0b and earnings per share (EPS) of ₹45.90 in 2027. It looks like there’s been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for Dalmia Bharat Sugar and Industries
Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of ₹560, suggesting that the forecast performance does not have a long term impact on the company’s valuation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting Dalmia Bharat Sugar and Industries’ growth to accelerate, with the forecast 15% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.0% per annum 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 11% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Dalmia Bharat Sugar and Industries is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dalmia Bharat Sugar and Industries following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹560, with the latest estimates not enough to have an impact on their price target.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. 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 Dalmia Bharat Sugar and Industries you should be aware of.
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