Earnings Update: Stove Kraft Limited (NSE:STOVEKRAFT) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Stove Kraft Limited (NSE:STOVEKRAFT) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a credible result overall, with revenues of ₹4.0b and statutory earnings per share of ₹10.30 both in line with analyst estimates, showing that Stove Kraft is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Stove Kraft

Taking into account the latest results, the consensus forecast from Stove Kraft's three analysts is for revenues of ₹17.9b in 2026. This reflects a substantial 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 80% to ₹21.60. In the lead-up to this report, the analysts had been modelling revenues of ₹18.2b and earnings per share (EPS) of ₹24.30 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹1,085 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Stove Kraft analyst has a price target of ₹1,200 per share, while the most pessimistic values it at ₹970. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Stove Kraft'shistorical trends, as the 17% annualised revenue growth to the end of 2026 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Stove Kraft 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 important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹1,085, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Stove Kraft going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Stove Kraft (1 is potentially serious!) 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.