Prataap Snacks Limited Just Missed EPS By 30%: Here's What Analysts Think Will Happen Next

Prataap Snacks Limited (NSE:DIAMONDYD) just released its latest third-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹4.1b, statutory earnings missed forecasts by an incredible 30%, coming in at just ₹4.51 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.

See our latest analysis for Prataap Snacks

After the latest results, the dual analysts covering Prataap Snacks are now predicting revenues of ₹19.0b in 2025. If met, this would reflect a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to ₹32.00. Before this earnings report, the analysts had been forecasting revenues of ₹19.6b and earnings per share (EPS) of ₹36.01 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The average price target climbed 7.9% to ₹1,167despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Prataap Snacks going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Prataap Snacks that you need to take into consideration.

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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.