It’s been a mediocre week for United Foodbrands Limited (NSE:UFBL) shareholders, with the stock dropping 19% to ₹546 in the week since its latest second-quarter results. The results were positive, with revenue coming in at ₹4.3b, beating analyst expectations by 5.5%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, United Foodbrands’ two analysts are now forecasting revenues of ₹17.3b in 2027. This would be a solid 9.1% improvement in revenue compared to the last 12 months. United Foodbrands is also expected to turn profitable, with statutory earnings of ₹4.70 per share. Before this earnings report, the analysts had been forecasting revenues of ₹16.9b and earnings per share (EPS) of ₹4.70 in 2027. So it looks like there’s been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
Check out our latest analysis for United Foodbrands
It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹965, implying that the uplift in revenue is not expected to greatly contribute to United Foodbrands’s valuation in the near term.
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. It’s clear from the latest estimates that United Foodbrands’ 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 8.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. United Foodbrands is expected to grow at about the same rate as its industry, so it’s not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that United Foodbrands will grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
You can also see whether United Foodbrands is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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