Investors in Britannia Industries Limited (NSE:BRITANNIA) had a good week, as its shares rose 3.1% to close at ₹4,785 following the release of its second-quarter results. Results overall were respectable, with statutory earnings of ₹29.93 per share roughly in line with what the analysts had forecast. Revenues of ₹56b came in 2.8% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Britannia Industries' 30 analysts is for revenues of ₹214.0b in 2027. This reflects a credible 5.8% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹113, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹212.0b and earnings per share (EPS) of ₹114 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.
Check out our latest analysis for Britannia Industries
It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹6,003. 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. The most optimistic Britannia Industries analyst has a price target of ₹6,998 per share, while the most pessimistic values it at ₹5,000. 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 Britannia Industries shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Britannia Industries' growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Britannia Industries 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 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 reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Britannia Industries going out to 2029, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Britannia Industries that you need to take into consideration.
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