Safari Industries (India) Limited (NSE:SAFARI) Just Released Its Annual Results And Analysts Are Updating Their Estimates

The annual results for Safari Industries (India) Limited (NSE:SAFARI) were released last week, making it a good time to revisit its performance. Revenues came in 2.6% below expectations, at ₹16b. Statutory earnings per share were relatively better off, with a per-share profit of ₹36.73 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Safari Industries (India) after the latest results.

View our latest analysis for Safari Industries (India)

Taking into account the latest results, the consensus forecast from Safari Industries (India)'s eight analysts is for revenues of ₹18.3b in 2025. This reflects a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 17% to ₹42.25. Before this earnings report, the analysts had been forecasting revenues of ₹18.3b and earnings per share (EPS) of ₹42.09 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 ₹2,464, suggesting that the company has met expectations in its recent result. 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. The most optimistic Safari Industries (India) analyst has a price target of ₹2,801 per share, while the most pessimistic values it at ₹2,301. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Safari Industries (India)'s revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% 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 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Safari Industries (India). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Safari Industries (India) going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Safari Industries (India) that 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.

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