Stock Analysis

Analysts Are Updating Their Vedant Fashions Limited (NSE:MANYAVAR) Estimates After Its Full-Year Results

NSEI:MANYAVAR
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Investors in Vedant Fashions Limited (NSE:MANYAVAR) had a good week, as its shares rose 2.1% to close at ₹945 following the release of its full-year results. It was a credible result overall, with revenues of ₹14b and statutory earnings per share of ₹17.04 both in line with analyst estimates, showing that Vedant Fashions is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Vedant Fashions

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NSEI:MANYAVAR Earnings and Revenue Growth May 3rd 2024

Taking into account the latest results, the current consensus from Vedant Fashions' nine analysts is for revenues of ₹15.5b in 2025. This would reflect a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 14% to ₹19.42. In the lead-up to this report, the analysts had been modelling revenues of ₹15.8b and earnings per share (EPS) of ₹19.78 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹1,143, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Vedant Fashions, with the most bullish analyst valuing it at ₹1,422 and the most bearish at ₹950 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Vedant Fashions'historical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. So although Vedant Fashions is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,143, with the latest estimates not enough to have an impact on their price targets.

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

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Vedant Fashions that you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether Vedant Fashions is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.