Stove Kraft Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders will be ecstatic, with their stake up 20% over the past week following Stove Kraft Limited's (NSE:STOVEKRAFT) latest quarterly results. It looks like a credible result overall - although revenues of ₹3.1b were what the analyst expected, Stove Kraft surprised by delivering a (statutory) profit of ₹2.48 per share, an impressive 38% above what was forecast. The analyst 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Stove Kraft

Taking into account the latest results, the consensus forecast from Stove Kraft's lone analyst is for revenues of ₹15.4b in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 62% to ₹16.70. Before this earnings report, the analyst had been forecasting revenues of ₹15.6b and earnings per share (EPS) of ₹16.10 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 37% to ₹780.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stove Kraft's past performance and to peers in the same industry. The analyst is definitely expecting Stove Kraft's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Stove Kraft is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stove Kraft following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for Stove Kraft going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Stove Kraft (including 1 which is significant) .

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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.