Dalmia Bharat Limited Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that Dalmia Bharat Limited (NSE:DALBHARAT) filed its second-quarter result this time last week. The early response was not positive, with shares down 9.2% to ₹1,474 in the past week. Revenues fell 2.5% short of expectations, at ₹36b. Earnings correspondingly dipped, with Dalmia Bharat reporting a statutory loss of ₹11.03 per share, whereas the analysts had previously modelled a profit in this period. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Dalmia Bharat's 36 analysts is for revenues of ₹165.6b in 2027. This would reflect a meaningful 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 67% to ₹43.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹166.7b and earnings per share (EPS) of ₹61.48 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
Check out our latest analysis for Dalmia Bharat
It might be a surprise to learn that the consensus price target fell 8.7% to ₹1,941, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Dalmia Bharat at ₹2,300 per share, while the most bearish prices it at ₹1,620. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Dalmia Bharat's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.8% per year. So it's clear with the acceleration in growth, Dalmia Bharat is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dalmia Bharat. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Dalmia Bharat's future valuation.
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 forecasts for Dalmia Bharat 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 3 warning signs for Dalmia Bharat you should know about.
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