Last week, you might have seen that Stove Kraft Limited (NSE:STOVEKRAFT) released its first-quarter result to the market. The early response was not positive, with shares down 6.3% to ₹756 in the past week. Stove Kraft beat revenue forecasts by a solid 16% to hit ₹4.8b. Statutory earnings per share came in at ₹12.69, in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the four analysts covering Stove Kraft are now predicting revenues of ₹19.3b in 2027. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 44% to ₹21.20. Before this earnings report, the analysts had been forecasting revenues of ₹18.5b and earnings per share (EPS) of ₹18.60 in 2027. So it seems there's been a definite increase in optimism about Stove Kraft's future following the latest results, with a nice increase in the earnings per share forecasts in particular.
See our latest analysis for Stove Kraft
With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to ₹815per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Stove Kraft, with the most bullish analyst valuing it at ₹1,000 and the most bearish at ₹595 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. It's clear from the latest estimates that Stove Kraft's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Stove Kraft is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stove Kraft following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Stove Kraft will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Stove Kraft going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Stove Kraft's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.