Dodla Dairy Limited Just Recorded A 6.2% Revenue Beat: Here's What Analysts Think

Last week, you might have seen that Dodla Dairy Limited (NSE:DODLA) released its quarterly result to the market. The early response was not positive, with shares down 2.7% to ₹1,259 in the past week. Results overall were respectable, with statutory earnings of ₹10.54 per share roughly in line with what the analysts had forecast. Revenues of ₹10.0b came in 6.2% ahead of analyst predictions. Following the result, the analysts have 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Dodla Dairy

Taking into account the latest results, the consensus forecast from Dodla Dairy's three analysts is for revenues of ₹36.3b in 2025. This reflects a modest 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 16% to ₹41.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹36.2b and earnings per share (EPS) of ₹41.45 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹1,427, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Dodla Dairy at ₹1,500 per share, while the most bearish prices it at ₹1,365. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Dodla Dairy is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dodla Dairy's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past three years. Compare this to the 247 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it looks like Dodla Dairy is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Dodla Dairy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Dodla Dairy going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Dodla Dairy 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.