As you might know, Orkla India Limited (NSE:ORKLAINDIA) just kicked off its latest second-quarter results with some very strong numbers. The company beat expectations with revenues of ₹7.8b arriving 6.6% ahead of forecasts. Statutory earnings per share (EPS) were ₹6.70, 9.8% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Orkla India's six analysts are now forecasting revenues of ₹27.8b in 2027. This would be a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.1% to ₹23.71. In the lead-up to this report, the analysts had been modelling revenues of ₹27.8b and earnings per share (EPS) of ₹23.71 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 Orkla India
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹717. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Orkla India at ₹770 per share, while the most bearish prices it at ₹650. This is a very narrow spread of estimates, implying either that Orkla India is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 pretty clear that there is an expectation that Orkla India's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Orkla India.
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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Orkla India going out to 2029, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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