Vardhman Textiles Limited (NSE:VTL) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Vardhman Textiles Limited (NSE:VTL) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of ₹98b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were ₹22.20, 2.1% ahead of 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Vardhman Textiles

Taking into account the latest results, the consensus forecast from Vardhman Textiles' four analysts is for revenues of ₹105.9b in 2025. This reflects a reasonable 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 70% to ₹37.10. In the lead-up to this report, the analysts had been modelling revenues of ₹104.0b and earnings per share (EPS) of ₹35.40 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹452, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Vardhman Textiles, with the most bullish analyst valuing it at ₹469 and the most bearish at ₹418 per share. This is a very narrow spread of estimates, implying either that Vardhman Textiles is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Vardhman Textiles' revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Vardhman Textiles is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Vardhman Textiles 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. The consensus price target held steady at ₹452, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Vardhman Textiles going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Vardhman Textiles (including 1 which makes us a bit uncomfortable) .

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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.