Bikaji Foods International Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest yearly earnings release from Bikaji Foods International Limited (NSE:BIKAJI), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹20b were in line with what the analysts predicted, Bikaji Foods International surprised by delivering a statutory profit of ₹5.14 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Bikaji Foods International

Taking into account the latest results, the current consensus from Bikaji Foods International's three analysts is for revenues of ₹23.3b in 2024, which would reflect a notable 18% increase on its sales over the past 12 months. Per-share earnings are expected to surge 37% to ₹7.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹24.1b and earnings per share (EPS) of ₹6.80 in 2024. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The consensus has made no major changes to the price target of ₹451, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bikaji Foods International at ₹464 per share, while the most bearish prices it at ₹440. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Bikaji Foods International'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Bikaji Foods International is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bikaji Foods International's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹451, 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. At Simply Wall St, we have a full range of analyst estimates for Bikaji Foods International going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Bikaji Foods International's balance sheet, and whether we think Bikaji Foods International is carrying too much debt, for free on our 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.