Earnings Release: Here's Why Analysts Cut Their V.I.P. Industries Limited (NSE:VIPIND) Price Target To ₹367

Shareholders of V.I.P. Industries Limited (NSE:VIPIND) will be pleased this week, given that the stock price is up 16% to ₹366 following its latest yearly results. It was a pretty bad result overall; while revenues were in line with expectations at ₹22b, statutory losses exploded to ₹4.84 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from V.I.P. Industries' eleven analysts is for revenues of ₹23.3b in 2026. This reflects a satisfactory 6.3% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with V.I.P. Industries forecast to report a statutory profit of ₹7.49 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.4b and earnings per share (EPS) of ₹7.99 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for V.I.P. Industries

It'll come as no surprise then, to learn that the analysts have cut their price target 5.9% to ₹367. 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. Currently, the most bullish analyst values V.I.P. Industries at ₹479 per share, while the most bearish prices it at ₹299. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 pretty clear that there is an expectation that V.I.P. Industries' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that V.I.P. Industries is also expected to grow slower than other industry participants.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of V.I.P. Industries' future valuation.

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. We have estimates - from multiple V.I.P. Industries analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with V.I.P. Industries , and understanding it should be part of your investment process.

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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.