Shareholders of TTK Prestige Limited (NSE:TTKPRESTIG) will be pleased this week, given that the stock price is up 16% to ₹605 following its latest second-quarter results. Results overall were respectable, with statutory earnings of ₹11.72 per share roughly in line with what the analysts had forecast. Revenues of ₹10b came in 3.2% ahead of analyst predictions. 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. 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 eight analysts covering TTK Prestige are now predicting revenues of ₹35.9b in 2027. If met, this would reflect a modest 6.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 3.2% to ₹16.97 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹34.5b and earnings per share (EPS) of ₹16.53 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for TTK Prestige
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹706, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 TTK Prestige, with the most bullish analyst valuing it at ₹801 and the most bearish at ₹571 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TTK Prestige's past performance and to peers in the same industry. It's clear from the latest estimates that TTK Prestige's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TTK Prestige is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TTK Prestige following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that TTK Prestige will grow in line with the overall industry. The consensus price target held steady at ₹706, with the latest estimates not enough to have an impact on their price targets.
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 TTK Prestige 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 1 warning sign for TTK Prestige you should know about.
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