Safari Industries (India) Limited Just Missed EPS By 7.4%: Here's What Analysts Think Will Happen Next

It's been a good week for Safari Industries (India) Limited (NSE:SAFARI) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.0% to ₹2,088. It was a pretty mixed result, with revenues beating expectations to hit ₹3.9b. Statutory earnings fell 7.4% short of analyst forecasts, reaching ₹8.98 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Safari Industries (India)

After the latest results, the six analysts covering Safari Industries (India) are now predicting revenues of ₹18.9b in 2025. If met, this would reflect a substantial 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 25% to ₹43.67. In the lead-up to this report, the analysts had been modelling revenues of ₹18.9b and earnings per share (EPS) of ₹44.70 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹2,412, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Safari Industries (India), with the most bullish analyst valuing it at ₹2,630 and the most bearish at ₹2,051 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Safari Industries (India)'s revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. So it's pretty clear that, while Safari Industries (India)'s revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Safari Industries (India). Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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.

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 estimates - from multiple Safari Industries (India) analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Safari Industries (India) you should know about.

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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.