Last week, you might have seen that Raymond Lifestyle Limited (NSE:RAYMONDLSL) released its quarterly result to the market. The early response was not positive, with shares down 6.2% to ₹479 in the past week. It was a workmanlike result, with revenues of ₹21b coming in 4.2% ahead of expectations, and statutory earnings per share of ₹7.59, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Raymond Lifestyle after the latest results.
Taking into account the latest results, the current consensus from Raymond Lifestyle's three analysts is for revenues of ₹75.4b in 2027. This would reflect a credible 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 366% to ₹27.35. In the lead-up to this report, the analysts had been modelling revenues of ₹73.9b and earnings per share (EPS) of ₹27.38 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.
Check out our latest analysis for Raymond Lifestyle
As a result, it might come as a surprise that the consensus price target has been cut 14% to ₹781, which could suggest that these earnings are considered less valuable by the market than previously. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Raymond Lifestyle, with the most bullish analyst valuing it at ₹843 and the most bearish at ₹700 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Raymond Lifestyle'shistorical trends, as the 9.2% annualised revenue growth to the end of 2027 is roughly in line with the 10% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So although Raymond Lifestyle is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Raymond Lifestyle going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Raymond Lifestyle you should know about.
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