Stock Analysis

Kalpataru Projects International Limited Just Missed EPS By 7.6%: Here's What Analysts Think Will Happen Next

NSEI:KPIL
Source: Shutterstock

Investors in Kalpataru Projects International Limited (NSE:KPIL) had a good week, as its shares rose 4.8% to close at ₹1,274 following the release of its second-quarter results. Kalpataru Projects International beat revenue expectations by 8.1%, at ₹49b. Statutory earnings per share (EPS) came in at ₹7.73, some 7.6% short of 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.

Check out our latest analysis for Kalpataru Projects International

earnings-and-revenue-growth
NSEI:KPIL Earnings and Revenue Growth November 1st 2024

Taking into account the latest results, the eight analysts covering Kalpataru Projects International provided consensus estimates of ₹194.7b revenue in 2025, which would reflect a noticeable 4.5% decline over the past 12 months. Statutory earnings per share are predicted to surge 38% to ₹44.36. Before this earnings report, the analysts had been forecasting revenues of ₹235.9b and earnings per share (EPS) of ₹49.31 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a real cut to earnings per share numbers as well.

The analysts made no major changes to their price target of ₹1,478, suggesting the downgrades are not expected to have a long-term impact on Kalpataru Projects International's valuation. 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 Kalpataru Projects International, with the most bullish analyst valuing it at ₹1,702 and the most bearish at ₹1,305 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kalpataru Projects International's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 8.8% annualised decline to the end of 2025. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. It's pretty clear that Kalpataru Projects International's revenues are expected to perform substantially worse than the wider industry.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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 Kalpataru Projects International going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Kalpataru Projects International (1 makes us a bit uncomfortable!) that we have uncovered.

Valuation is complex, but we're here to simplify it.

Discover if Kalpataru Projects International might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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

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.