Emami Limited Just Missed Earnings - But Analysts Have Updated Their Models
The quarterly results for Emami Limited (NSE:EMAMILTD) were released last week, making it a good time to revisit its performance. Results overall were not great, with earnings of ₹3.15 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹10b and were slightly better than forecasts. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Emami's 21 analysts is for revenues of ₹43.3b in 2027. This would reflect a solid 11% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹16.99, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹41.9b and earnings per share (EPS) of ₹18.51 in 2027. So it's pretty clear consensus is mixed on Emami after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.
View our latest analysis for Emami
There's been no major changes to the price target of ₹530, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 Emami analyst has a price target of ₹671 per share, while the most pessimistic values it at ₹404. 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 Emami shareholders.
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 clear from the latest estimates that Emami'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 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Emami to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Emami. 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 Emami going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Emami's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.