Results: Chalet Hotels Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Chalet Hotels Limited (NSE:CHALET) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of ₹3.7b, some 4.2% above estimates, and statutory earnings per share (EPS) coming in at ₹3.44, 32% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Chalet Hotels

Taking into account the latest results, the consensus forecast from Chalet Hotels' 13 analysts is for revenues of ₹18.2b in 2025. This reflects a substantial 36% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 77% to ₹18.89. Before this earnings report, the analysts had been forecasting revenues of ₹18.2b and earnings per share (EPS) of ₹18.85 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.

The analysts reconfirmed their price target of ₹832, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Chalet Hotels analyst has a price target of ₹950 per share, while the most pessimistic values it at ₹650. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 clear from the latest estimates that Chalet Hotels' rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. 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.

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 Chalet Hotels analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Chalet Hotels has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.