A week ago, ITC Hotels Limited (NSE:ITCHOTELS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of ₹11b arriving 8.2% ahead of forecasts. Statutory earnings per share (EPS) were ₹0.96, 6.7% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from ITC Hotels' 15 analysts is for revenues of ₹47.1b in 2027. This reflects an okay 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to ₹5.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹46.6b and earnings per share (EPS) of ₹4.99 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for ITC Hotels
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹215. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ITC Hotels, with the most bullish analyst valuing it at ₹240 and the most bearish at ₹189 per share. This is a very narrow spread of estimates, implying either that ITC Hotels is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 pretty clear that there is an expectation that ITC Hotels' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.8% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that ITC Hotels is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹215, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ITC Hotels analysts - going out to 2029, and you can see them free on our platform here.
We also provide an overview of the ITC Hotels Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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