V.I.P. Industries Limited (NSE:VIPIND) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹370

V.I.P. Industries Limited (NSE:VIPIND) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to ₹426 in the week after its latest first-quarter results. Revenues were ₹5.6b, and V.I.P. Industries was a dismal 13% short of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from V.I.P. Industries' eleven analysts is for revenues of ₹22.4b in 2026. This would reflect a credible 6.8% increase on its revenue over the past 12 months. V.I.P. Industries is also expected to turn profitable, with statutory earnings of ₹4.45 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.5b and earnings per share (EPS) of ₹4.78 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.

See our latest analysis for V.I.P. Industries

The average price target climbed 7.7% to ₹370despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on V.I.P. Industries, with the most bullish analyst valuing it at ₹482 and the most bearish at ₹300 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that V.I.P. Industries' revenue growth is expected to slow, with the forecast 9.2% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than V.I.P. Industries.

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. 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.

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.

Before you take the next step you should know about the 1 warning sign for V.I.P. Industries that we have uncovered.

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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.