Last week saw the newest quarterly earnings release from Kaveri Seed Company Limited (NSE:KSCL), an important milestone in the company's journey to build a stronger business. Kaveri Seed reported a serious miss, with revenue of ₹7.4b falling a huge 24% short of analyst estimates. The bright side is that statutory earnings per share of ₹56.94 were in line with forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Taking into account the latest results, the most recent consensus for Kaveri Seed from sole analyst is for revenues of ₹13.3b in 2027. If met, it would imply an okay 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 3.7% to ₹50.30. In the lead-up to this report, the analyst had been modelling revenues of ₹15.8b and earnings per share (EPS) of ₹71.20 in 2027. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.
View our latest analysis for Kaveri Seed
The consensus price target fell 8.8% to ₹986, with the weaker earnings outlook clearly leading valuation estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analyst, with revenue forecast to display 6.5% growth on an annualised basis. That is in line with its 7.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So although Kaveri Seed is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kaveri Seed. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Kaveri Seed's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Kaveri Seed going out as far as 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Kaveri Seed that you need to be mindful of.
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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.