Hindware Home Innovation Limited Recorded A 9.0% Miss On Revenue: Analysts Are Revisiting Their Models

Last week, you might have seen that Hindware Home Innovation Limited (NSE:HINDWAREAP) released its first-quarter result to the market. The early response was not positive, with shares down 9.8% to ₹380 in the past week. Revenues came in 9.0% below expectations, at ₹6.0b. Statutory earnings per share were relatively better off, with a per-share profit of ₹3.56 being roughly in line with analyst estimates. 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.

See our latest analysis for Hindware Home Innovation

Taking into account the latest results, the most recent consensus for Hindware Home Innovation from three analysts is for revenues of ₹29.8b in 2025. If met, it would imply a reasonable 6.0% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 174% to ₹7.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹31.0b and earnings per share (EPS) of ₹12.40 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The consensus price target fell 6.3% to ₹489, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hindware Home Innovation, with the most bullish analyst valuing it at ₹510 and the most bearish at ₹458 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Hindware Home Innovation's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. So it's pretty clear that, while Hindware Home Innovation's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hindware Home Innovation. They also downgraded Hindware Home Innovation's revenue estimates, but industry data suggests that it is expected to grow faster 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 Hindware Home Innovation's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hindware Home Innovation going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Hindware Home Innovation has 2 warning signs (and 1 which is potentially serious) we think you should know about.

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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.