The Indian Hotels Company Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The Indian Hotels Company Limited (NSE:INDHOTEL) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹18b, some 4.9% above estimates, and statutory earnings per share (EPS) coming in at ₹3.89, 133% ahead of expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Indian Hotels

Taking into account the latest results, the consensus forecast from Indian Hotels' 20 analysts is for revenues of ₹82.2b in 2025. This reflects a decent 11% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹11.79, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹80.4b and earnings per share (EPS) of ₹11.34 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹688, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Indian Hotels, with the most bullish analyst valuing it at ₹825 and the most bearish at ₹540 per share. 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. The analysts are definitely expecting Indian Hotels' growth to accelerate, with the forecast 23% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 20% per year. Indian Hotels is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 Indian Hotels following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹688, with the latest estimates not enough to have an impact on their price targets.

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 Indian Hotels analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Indian Hotels that you should be aware of.

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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.