Dodla Dairy Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Dodla Dairy Limited (NSE:DODLA) shareholders, because the company has just released its latest full-year results, and the shares gained 2.8% to ₹501. It was a pretty mixed result, with revenues beating expectations to hit ₹28b. Statutory earnings fell 8.2% short of analyst forecasts, reaching ₹20.39 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Dodla Dairy

Taking into account the latest results, the most recent consensus for Dodla Dairy from twin analysts is for revenues of ₹32.2b in 2024 which, if met, would be a solid 14% increase on its sales over the past 12 months. Per-share earnings are expected to jump 42% to ₹29.20. In the lead-up to this report, the analysts had been modelling revenues of ₹32.1b and earnings per share (EPS) of ₹31.90 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹630, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dodla Dairy's past performance and to peers in the same industry. It's clear from the latest estimates that Dodla Dairy's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dodla Dairy to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dodla Dairy. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Dodla Dairy going out as far as 2025, 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.