S.P. Apparels Limited Just Recorded A 26% Revenue Beat: Here's What Analysts Think

There's been a notable change in appetite for S.P. Apparels Limited (NSE:SPAL) shares in the week since its quarterly report, with the stock down 14% to ₹820. Revenue of ₹3.9b came in a notable 26% ahead of expectations, while statutory earnings of ₹35.72 were in line with what the analysts had been forecasting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 S.P. Apparels

Taking into account the latest results, the current consensus from S.P. Apparels' three analysts is for revenues of ₹13.9b in 2025. This would reflect a meaningful 18% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹13.3b and earnings per share (EPS) of ₹38.40 in 2025. What's really interesting is that while the consensus made a modest lift to revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of ₹977. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on S.P. Apparels, with the most bullish analyst valuing it at ₹1,102 and the most bearish at ₹910 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting S.P. Apparels is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the S.P. Apparels' past performance and to peers in the same industry. The analysts are definitely expecting S.P. Apparels' growth to accelerate, with the forecast 39% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect S.P. Apparels to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹977, with the latest estimates not enough to have an impact on their price targets.

At least one of S.P. Apparels' three analysts has provided estimates out to 2027, which can be seen for free on our platform here.

It might also be worth considering whether S.P. Apparels' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.