It's been a pretty great week for S H Kelkar and Company Limited (NSE:SHK) shareholders, with its shares surging 17% to ₹165 in the week since its latest first-quarter results. Revenues were ₹6.6b, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹3.28, an impressive 228% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Taking into account the latest results, the current consensus from S H Kelkar's sole analyst is for revenues of ₹26.9b in 2027. This would reflect a solid 9.7% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 41% to ₹9.00. Before this earnings report, the analyst had been forecasting revenues of ₹26.6b and earnings per share (EPS) of ₹4.00 in 2027. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.
See our latest analysis for S H Kelkar
The consensus price target fell 27% to ₹270, suggesting the increase in earnings forecasts was not enough to offset other the analyst concerns.
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 S H Kelkar's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that S H Kelkar is expected to grow at about the same rate as the wider 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 S H Kelkar following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on S H Kelkar. Long-term earnings power is much more important than next year's profits. We have analyst estimates for S H Kelkar going out as far as 2029, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 5 warning signs for S H Kelkar you should be aware of, and 1 of them is a bit concerning.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.