Analysts Are Updating Their Devyani International Limited (NSE:DEVYANI) Estimates After Its Interim Results

Last week, you might have seen that Devyani International Limited (NSE:DEVYANI) released its half-year result to the market. The early response was not positive, with shares down 2.4% to ₹169 in the past week. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on ₹24b in revenue. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Devyani International

After the latest results, the 23 analysts covering Devyani International are now predicting revenues of ₹50.5b in 2025. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 254% to ₹0.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹51.3b and earnings per share (EPS) of ₹1.21 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹186, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Devyani International, with the most bullish analyst valuing it at ₹220 and the most bearish at ₹149 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.

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. It's clear from the latest estimates that Devyani International's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 27% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Devyani International is expected to grow much faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹186, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Devyani International going out to 2027, and you can see them free on our platform here..

Even so, be aware that Devyani International is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.