Analysts Have Lowered Expectations For Barbeque-Nation Hospitality Limited (NSE:BARBEQUE) After Its Latest Results

There's been a notable change in appetite for Barbeque-Nation Hospitality Limited (NSE:BARBEQUE) shares in the week since its quarterly report, with the stock down 10% to ₹512. It was a negative result overall, with revenues coming in 19% less than what the analysts expected, at ₹2.4b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Barbeque-Nation Hospitality

Taking into account the latest results, the current consensus from Barbeque-Nation Hospitality's three analysts is for revenues of ₹12.9b in 2025. This would reflect an okay 3.9% increase on its revenue over the past 12 months. Earnings are expected to improve, with Barbeque-Nation Hospitality forecast to report a statutory profit of ₹1.10 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹13.6b and earnings per share (EPS) of ₹6.47 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.1% to ₹667. 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 Barbeque-Nation Hospitality, with the most bullish analyst valuing it at ₹851 and the most bearish at ₹550 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Barbeque-Nation Hospitality shareholders.

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 Barbeque-Nation Hospitality's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it seems obvious that Barbeque-Nation Hospitality 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple Barbeque-Nation Hospitality analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Barbeque-Nation Hospitality's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.