Stock Analysis

Mrs. Bectors Food Specialities Limited Just Beat Revenue By 6.2%: Here's What Analysts Think Will Happen Next

NSEI:BECTORFOOD
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Shareholders might have noticed that Mrs. Bectors Food Specialities Limited (NSE:BECTORFOOD) filed its quarterly result this time last week. The early response was not positive, with shares down 6.9% to ₹1,702 in the past week. Results overall were respectable, with statutory earnings of ₹6.56 per share roughly in line with what the analysts had forecast. Revenues of ₹5.0b came in 6.2% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Mrs. Bectors Food Specialities

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NSEI:BECTORFOOD Earnings and Revenue Growth November 12th 2024

Taking into account the latest results, the current consensus from Mrs. Bectors Food Specialities' seven analysts is for revenues of ₹19.2b in 2025. This would reflect a decent 8.4% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 12% to ₹26.02. Before this earnings report, the analysts had been forecasting revenues of ₹18.9b and earnings per share (EPS) of ₹25.58 in 2025. 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.9% to ₹1,820. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Mrs. Bectors Food Specialities, with the most bullish analyst valuing it at ₹2,233 and the most bearish at ₹1,326 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.

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. We would highlight that Mrs. Bectors Food Specialities' revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. So it's pretty clear that, while Mrs. Bectors Food Specialities' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mrs. Bectors Food Specialities going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Mrs. Bectors Food Specialities (1 doesn't sit too well with us!) that you need to be mindful 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.