Earnings Update: Here's Why Analysts Just Lifted Their Bikaji Foods International Limited (NSE:BIKAJI) Price Target To ₹781

Investors in Bikaji Foods International Limited (NSE:BIKAJI) had a good week, as its shares rose 2.8% to close at ₹717 following the release of its first-quarter results. It was a workmanlike result, with revenues of ₹5.7b coming in 3.2% ahead of expectations, and statutory earnings per share of ₹2.34, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Bikaji Foods International

Taking into account the latest results, the current consensus from Bikaji Foods International's seven analysts is for revenues of ₹26.6b in 2025. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.3% to ₹11.55. Before this earnings report, the analysts had been forecasting revenues of ₹26.4b and earnings per share (EPS) of ₹11.36 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.2% to ₹781. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Bikaji Foods International at ₹885 per share, while the most bearish prices it at ₹600. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bikaji Foods International shareholders.

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 pretty clear that there is an expectation that Bikaji Foods International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past year. 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 Bikaji Foods International's 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Bikaji Foods International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bikaji Foods International analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.

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