Analysts Have Been Trimming Their V.I.P. Industries Limited (NSE:VIPIND) Price Target After Its Latest Report
Shareholders might have noticed that V.I.P. Industries Limited (NSE:VIPIND) filed its quarterly result this time last week. The early response was not positive, with shares down 4.8% to ₹300 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.5%to hit ₹5.8b. 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.
After the latest results, the seven analysts covering V.I.P. Industries are now predicting revenues of ₹20.3b in 2027. If met, this would reflect a solid 8.4% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 64% to ₹9.60. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹20.3b and losses of ₹0.60 per share in 2027. So it's pretty clear the analysts have mixed opinions on V.I.P. Industries even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.
Check out our latest analysis for V.I.P. Industries
The consensus price target fell 13% to ₹301per share, with the analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic V.I.P. Industries analyst has a price target of ₹430 per share, while the most pessimistic values it at ₹200. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 9.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. It's clear that while V.I.P. Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of V.I.P. Industries' future valuation.
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. We have estimates - from multiple V.I.P. Industries analysts - going out to 2029, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for V.I.P. Industries that we have uncovered.
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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.