Earnings Update: Here's Why Analysts Just Lifted Their Prataap Snacks Limited (NSE:DIAMONDYD) Price Target To ₹1,180

Prataap Snacks Limited (NSE:DIAMONDYD) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to ₹1,145 in the week after its latest annual results. It was a pretty bad result overall; while revenues were in line with expectations at ₹17b, statutory losses exploded to ₹14.36 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the most recent consensus for Prataap Snacks from twin analysts is for revenues of ₹19.3b in 2026. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Earnings are expected to improve, with Prataap Snacks forecast to report a statutory profit of ₹22.64 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹19.6b and earnings per share (EPS) of ₹23.17 in 2026. The analysts 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.

See our latest analysis for Prataap Snacks

Despite cutting their earnings forecasts,the analysts have lifted their price target 13% to ₹1,180, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

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 clear from the latest estimates that Prataap Snacks' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.6% 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 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Prataap Snacks is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Prataap Snacks. 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.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see whether Prataap Snacks is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.