Honasa Consumer Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Honasa Consumer Limited (NSE:HONASA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of ₹7.6b, some 2.2% above estimates, and statutory earnings per share (EPS) coming in at ₹2.76, 27% ahead of expectations. 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. 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 current consensus from Honasa Consumer's 15 analysts is for revenues of ₹29.3b in 2027. This would reflect a decent 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 15% to ₹8.80. In the lead-up to this report, the analysts had been modelling revenues of ₹28.6b and earnings per share (EPS) of ₹7.68 in 2027. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
Check out our latest analysis for Honasa Consumer
It will come as no surprise to learn that the analysts have increased their price target for Honasa Consumer 17% to ₹554on the back of these upgrades. 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 Honasa Consumer, with the most bullish analyst valuing it at ₹720 and the most bearish at ₹390 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Honasa Consumer's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 12% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Honasa Consumer to grow faster than 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 Honasa Consumer following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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 Honasa Consumer going out to 2029, and you can see them free on our platform here..
We also provide an overview of the Honasa Consumer Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.