Revenue Miss: Hindware Home Innovation Limited Fell 6.1% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Shareholders might have noticed that Hindware Home Innovation Limited (NSE:HINDWAREAP) filed its quarterly result this time last week. The early response was not positive, with shares down 9.9% to ₹254 in the past week. Revenues came in 6.1% below expectations, at ₹6.3b. Statutory earnings per share were relatively better off, with a per-share profit of ₹3.56 being roughly in line with analyst estimates. 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 Hindware Home Innovation

Taking into account the latest results, the consensus forecast from Hindware Home Innovation's three analysts is for revenues of ₹28.4b in 2025. This reflects a reasonable 3.1% improvement in revenue compared to the last 12 months. Hindware Home Innovation is also expected to turn profitable, with statutory earnings of ₹1.00 per share. Before this earnings report, the analysts had been forecasting revenues of ₹29.8b and earnings per share (EPS) of ₹7.30 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.

It'll come as no surprise then, to learn that the analysts have cut their price target 18% to ₹397. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hindware Home Innovation at ₹493 per share, while the most bearish prices it at ₹297. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Hindware Home Innovation's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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.

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 estimates - from multiple Hindware Home Innovation analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Hindware Home Innovation 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.