Chalet Hotels Limited Just Recorded A 32% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Chalet Hotels Limited (NSE:CHALET) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.2% to hit ₹3.7b. Chalet Hotels also reported a statutory profit of ₹3.44, which was an impressive 32% above what the analysts had forecast. 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 Chalet Hotels

Taking into account the latest results, the most recent consensus for Chalet Hotels from 13 analysts is for revenues of ₹18.0b in 2025. If met, it would imply a major 34% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 66% to ₹18.81. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹18.0b and earnings per share (EPS) of ₹18.71 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹725. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Chalet Hotels, with the most bullish analyst valuing it at ₹850 and the most bearish at ₹610 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Chalet Hotels' growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chalet Hotels is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Chalet Hotels. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Chalet Hotels analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Chalet Hotels that you need to take into consideration.

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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.