Results: K.P.R. Mill Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, K.P.R. Mill Limited (NSE:KPRMILL) recently reported its second-quarter numbers. K.P.R. Mill missed revenue estimates by 3.9%, coming in at₹15b, although statutory earnings per share (EPS) of ₹6.00 beat expectations, coming in 8.7% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for K.P.R. Mill

Taking into account the latest results, the consensus forecast from K.P.R. Mill's seven analysts is for revenues of ₹63.2b in 2025. This reflects a credible 4.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to ₹28.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹68.3b and earnings per share (EPS) of ₹28.55 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at ₹968even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic K.P.R. Mill analyst has a price target of ₹1,080 per share, while the most pessimistic values it at ₹810. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting K.P.R. Mill is an easy business to forecast or the the analysts are all using similar assumptions.

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 K.P.R. Mill's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that K.P.R. Mill is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. 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. We have estimates - from multiple K.P.R. Mill analysts - 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 K.P.R. Mill that you need to take into consideration.

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.