₹917 - That's What Analysts Think TTK Prestige Limited (NSE:TTKPRESTIG) Is Worth After These Results

It's been a good week for TTK Prestige Limited (NSE:TTKPRESTIG) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.4% to ₹937. Revenues came in 3.9% below expectations, at ₹5.9b. Statutory earnings per share were relatively better off, with a per-share profit of ₹16.48 being roughly in line with analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TTK Prestige after the latest results.

See our latest analysis for TTK Prestige

Following the latest results, TTK Prestige's seven analysts are now forecasting revenues of ₹29.0b in 2025. This would be a notable 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 18% to ₹18.93. In the lead-up to this report, the analysts had been modelling revenues of ₹29.3b and earnings per share (EPS) of ₹19.56 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 8.2% to ₹917, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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 TTK Prestige analyst has a price target of ₹1,027 per share, while the most pessimistic values it at ₹775. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that TTK Prestige's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. So it's clear that despite the acceleration in growth, TTK Prestige is expected to grow meaningfully slower than the industry average.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on TTK Prestige. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TTK Prestige analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for TTK Prestige that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com