Earnings Update: Vishal Mega Mart Limited (NSE:VMM) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
Shareholders might have noticed that Vishal Mega Mart Limited (NSE:VMM) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.1% to ₹108 in the past week. It was a credible result overall, with revenues of ₹37b and statutory earnings per share of ₹0.55 both in line with analyst estimates, showing that Vishal Mega Mart is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Vishal Mega Mart's 18 analysts are now forecasting revenues of ₹153.0b in 2027. This would be a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 14% to ₹2.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹153.0b and earnings per share (EPS) of ₹2.15 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.
See our latest analysis for Vishal Mega Mart
There were no changes to revenue or earnings estimates or the price target of ₹147, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Vishal Mega Mart, with the most bullish analyst valuing it at ₹170 and the most bearish at ₹100.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vishal Mega Mart's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 20% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So it's pretty clear that Vishal Mega Mart is forecast to grow substantially faster than its industry.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹147, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Vishal Mega Mart analysts - going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether Vishal Mega Mart's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.