Earnings Release: Here's Why Analysts Cut Their Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) Price Target To ₹530

Last week, you might have seen that Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) released its third-quarter result to the market. The early response was not positive, with shares down 8.0% to ₹339 in the past week. Results overall were respectable, with statutory earnings of ₹33.66 per share roughly in line with what the analyst had forecast. Revenues of ₹8.4b came in 2.3% ahead of analyst predictions. Following the result, the analyst has 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Dalmia Bharat Sugar and Industries

Taking into account the latest results, the most recent consensus for Dalmia Bharat Sugar and Industries from solitary analyst is for revenues of ₹38.9b in 2026. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 13% to ₹38.10. In the lead-up to this report, the analyst had been modelling revenues of ₹38.9b and earnings per share (EPS) of ₹41.10 in 2026. The analyst seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The average price target fell 23% to ₹530, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. The analyst is definitely expecting Dalmia Bharat Sugar and Industries' growth to accelerate, with the forecast 9.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Dalmia Bharat Sugar and Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Dalmia Bharat Sugar and Industries' future valuation.

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 Dalmia Bharat Sugar and Industries going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Dalmia Bharat Sugar and Industries you should know about.

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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.