₹831 - That's What Analysts Think Quess Corp Limited (NSE:QUESS) Is Worth After These Results

The second-quarter results for Quess Corp Limited (NSE:QUESS) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of ₹52b and statutory earnings per share of ₹18.61. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Quess

Following the latest results, Quess' six analysts are now forecasting revenues of ₹213.7b in 2025. This would be a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to ₹28.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹214.6b and earnings per share (EPS) of ₹26.60 in 2025. So the consensus seems to have become somewhat more optimistic on Quess' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.2% to ₹831. 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 Quess at ₹1,100 per share, while the most bearish prices it at ₹600. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Quess'historical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. It's clear that while Quess' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Quess following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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 Quess going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Quess that you need to take into consideration.

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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.