Havells India Limited Just Beat EPS By 7.1%: Here's What Analysts Think Will Happen Next

A week ago, Havells India Limited (NSE:HAVELLS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 2.9% to hit ₹58b. Statutory earnings per share (EPS) came in at ₹6.48, some 7.1% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Havells India

Following the latest results, Havells India's 27 analysts are now forecasting revenues of ₹215.6b in 2025. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 20% to ₹26.65. Before this earnings report, the analysts had been forecasting revenues of ₹214.1b and earnings per share (EPS) of ₹26.76 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.5% to ₹1,864despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Havells India's earnings by assigning a price premium. 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. The most optimistic Havells India analyst has a price target of ₹2,230 per share, while the most pessimistic values it at ₹1,400. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 19% annually. So it's pretty clear that Havells India is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Havells India. 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 Havells India going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Havells India has 1 warning sign we think you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com