Eureka Forbes Limited (NSE:EUREKAFORB) just released its latest second-quarter results and things are looking bullish. The company beat expectations with revenues of ₹8.9b arriving 2.4% ahead of forecasts. Statutory earnings per share (EPS) were ₹3.81, 5.2% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the twelve analysts covering Eureka Forbes are now predicting revenues of ₹31.1b in 2027. If met, this would reflect a satisfactory 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 18% to ₹11.76. Before this earnings report, the analysts had been forecasting revenues of ₹30.8b and earnings per share (EPS) of ₹12.01 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Check out our latest analysis for Eureka Forbes
The consensus price target held steady at ₹618, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Eureka Forbes at ₹792 per share, while the most bearish prices it at ₹548. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Eureka Forbes shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eureka Forbes' past performance and to peers in the same industry. It's clear from the latest estimates that Eureka Forbes' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Eureka Forbes is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Eureka Forbes. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹618, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Eureka Forbes. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Eureka Forbes going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Eureka Forbes' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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