Revenue Beat: Stove Kraft Limited Beat Analyst Estimates By 6.1%

It's been a mediocre week for Stove Kraft Limited (NSE:STOVEKRAFT) shareholders, with the stock dropping 15% to ₹670 in the week since its latest second-quarter results. Stove Kraft beat revenue expectations by 6.1%, at ₹4.7b. Statutory earnings per share (EPS) came in at ₹6.45, some 2.3% short of analyst estimates. 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.

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Taking into account the latest results, the most recent consensus for Stove Kraft from four analysts is for revenues of ₹16.3b in 2026. If met, it would imply a reasonable 6.2% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 19% to ₹16.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.4b and earnings per share (EPS) of ₹16.08 in 2026. 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.

See our latest analysis for Stove Kraft

The analysts reconfirmed their price target of ₹803, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Stove Kraft, with the most bullish analyst valuing it at ₹850 and the most bearish at ₹715 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Stove Kraft'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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 Stove Kraft going out to 2028, and you can see them free on our platform here..

You can also view our analysis of Stove Kraft's balance sheet, and whether we think Stove Kraft is carrying too much debt, for free on our 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.