Here's What Analysts Are Forecasting For Brigade Hotel Ventures Limited (NSE:BRIGHOTEL) After Its Second-Quarter Results
As you might know, Brigade Hotel Ventures Limited (NSE:BRIGHOTEL) just kicked off its latest second-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.5% to hit ₹1.4b. Statutory earnings per share (EPS) came in at ₹0.52, some 4.0% above whatthe analysts had expected. 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. 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 most recent consensus for Brigade Hotel Ventures from four analysts is for revenues of ₹5.80b in 2027. If met, it would imply a satisfactory 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 39% to ₹2.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹5.98b and earnings per share (EPS) of ₹2.65 in 2027. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.
Check out our latest analysis for Brigade Hotel Ventures
There's been no real change to the average price target of ₹84.00, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. There are some variant perceptions on Brigade Hotel Ventures, with the most bullish analyst valuing it at ₹91.00 and the most bearish at ₹80.00 per share. This is a very narrow spread of estimates, implying either that Brigade Hotel Ventures is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's clear from the latest estimates that Brigade Hotel Ventures' 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 6.9% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. So it's clear that despite the acceleration in growth, Brigade Hotel Ventures is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Brigade Hotel Ventures' earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. 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.
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 Brigade Hotel Ventures going out to 2029, and you can see them free on our platform here..
You can also see our analysis of Brigade Hotel Ventures' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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