Earnings Update: Here's Why Analysts Just Lifted Their DOMS Industries Limited (NSE:DOMS) Price Target To ₹2,398

Last week, you might have seen that DOMS Industries Limited (NSE:DOMS) released its quarterly result to the market. The early response was not positive, with shares down 4.5% to ₹2,282 in the past week. Results were roughly in line with estimates, with revenues of ₹4.5b and statutory earnings per share of ₹27.75. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for DOMS Industries

After the latest results, the six analysts covering DOMS Industries are now predicting revenues of ₹19.4b in 2025. If met, this would reflect a substantial 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 17% to ₹32.59. Before this earnings report, the analysts had been forecasting revenues of ₹19.1b and earnings per share (EPS) of ₹32.20 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 15% to ₹2,398. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 DOMS Industries at ₹2,650 per share, while the most bearish prices it at ₹2,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting DOMS Industries is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DOMS Industries' past performance and to peers in the same industry. The analysts are definitely expecting DOMS Industries' growth to accelerate, with the forecast 29% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% per annum 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that DOMS Industries is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for DOMS Industries going out to 2027, and you can see them free on our platform here.

You can also see our analysis of DOMS Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.