Earnings Update: Here's Why Analysts Just Lifted Their Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) Price Target To ₹685

The second-quarter results for Dalmia Bharat Sugar and Industries Limited (NSE:DALMIASUG) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of ₹9.3b coming in 2.8% ahead of expectations, and statutory earnings per share of ₹33.66, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Dalmia Bharat Sugar and Industries

Taking into account the latest results, the current consensus from Dalmia Bharat Sugar and Industries' lone analyst is for revenues of ₹36.1b in 2025. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.2% to ₹35.00. Before this earnings report, the analyst had been forecasting revenues of ₹35.2b and earnings per share (EPS) of ₹35.40 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a small increase to to revenue forecasts.

The consensus price target increased 18% to ₹685, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Dalmia Bharat Sugar and Industries' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.0% p.a. 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 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Dalmia Bharat Sugar and Industries 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 analyst holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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.

You still need to take note of risks, for example - Dalmia Bharat Sugar and Industries has 1 warning sign we think you should be aware 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.