SAMHI Hotels Limited Just Reported A Surprise Profit And Analysts Updated Their Estimates

As you might know, SAMHI Hotels Limited (NSE:SAMHI) recently reported its quarterly numbers. Although revenues of ₹2.5b were in line with analyst expectations, SAMHI Hotels surprised on the earnings front, with an unexpected (statutory) profit of ₹0.19 per share a nice improvement on the losses that the analystsforecast. 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 SAMHI Hotels

Taking into account the latest results, the consensus forecast from SAMHI Hotels' four analysts is for revenues of ₹11.9b in 2025. This reflects a meaningful 17% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹11.7b and earnings per share (EPS) of ₹4.90 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of ₹265. 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 SAMHI Hotels, with the most bullish analyst valuing it at ₹295 and the most bearish at ₹244 per share. This is a very narrow spread of estimates, implying either that SAMHI Hotels is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 SAMHI Hotels' rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SAMHI Hotels is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹265, with the latest estimates not enough to have an impact on their price targets.

At least one of SAMHI Hotels' four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

It might also be worth considering whether SAMHI Hotels' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com