₹438 - That's What Analysts Think Mrs. Bectors Food Specialities Limited (NSE:BECTORFOOD) Is Worth After These Results

Mrs. Bectors Food Specialities Limited (NSE:BECTORFOOD) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of ₹8.8b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹12.52, missing estimates by 2.9%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mrs. Bectors Food Specialities after the latest results.

Check out our latest analysis for Mrs. Bectors Food Specialities

After the latest results, the two analysts covering Mrs. Bectors Food Specialities are now predicting revenues of ₹10.5b in 2022. If met, this would reflect a meaningful 20% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be ₹12.40, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹10.5b and earnings per share (EPS) of ₹12.40 in 2022. 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 consensus price target rose 9.4% to ₹438despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Mrs. Bectors Food Specialities' earnings by assigning a price premium.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Mrs. Bectors Food Specialities' growth to accelerate, with the forecast 20% annualised growth to the end of 2022 ranking favourably alongside historical growth of 7.4% per annum 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 8.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mrs. Bectors Food Specialities 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for Mrs. Bectors Food Specialities going out as far as 2023, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Mrs. Bectors Food Specialities that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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