KDDL Limited Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

KDDL Limited (NSE:KDDL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.7% to hit ₹3.4b. KDDL also reported a statutory profit of ₹20.29, which was an impressive 24% above what the analyst had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for KDDL

After the latest results, the sole analyst covering KDDL are now predicting revenues of ₹13.6b in 2024. If met, this would reflect a satisfactory 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 12% to ₹80.40. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹13.4b and earnings per share (EPS) of ₹76.70 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 92% to ₹2,780per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that KDDL's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Compare this to the 337 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. So it's pretty clear that, while KDDL's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KDDL following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analyst 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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You still need to take note of risks, for example - KDDL has 1 warning sign we think you should be aware of.

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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.