The Indian Hotels Company Limited (NSE:INDHOTEL) Just Reported And Analysts Have Been Lifting Their Price Targets

The Indian Hotels Company Limited (NSE:INDHOTEL) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to ₹569 in the week after its latest yearly results. Results overall were respectable, with statutory earnings of ₹8.86 per share roughly in line with what the analysts had forecast. Revenues of ₹70b came in 2.2% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Indian Hotels

Following the latest results, Indian Hotels' 20 analysts are now forecasting revenues of ₹78.7b in 2025. This would be a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 36% to ₹11.99. In the lead-up to this report, the analysts had been modelling revenues of ₹77.9b and earnings per share (EPS) of ₹11.75 in 2025. So the consensus seems to have become somewhat more optimistic on Indian Hotels' earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.2% to ₹601. 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 ₹716 and the most bearish at ₹423 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Indian Hotels'historical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So it's pretty clear that Indian Hotels is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Indian Hotels' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Indian Hotels going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Indian Hotels has 1 warning sign we think 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.