The Consensus EPS Estimates For Foods and Inns Limited (NSE:FOODSIN) Just Fell A Lot

Today is shaping up negative for Foods and Inns Limited (NSE:FOODSIN) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Foods and Inns from its solo analyst is for revenues of ₹9.3b in 2025 which, if met, would be an okay 2.6% increase on its sales over the past 12 months. Per-share earnings are expected to soar 67% to ₹6.20. Prior to this update, the analyst had been forecasting revenues of ₹11b and earnings per share (EPS) of ₹7.70 in 2025. Indeed, we can see that the analyst is a lot more bearish about Foods and Inns' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Foods and Inns

The consensus price target fell 24% to ₹143, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Foods and Inns' revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2025 being well below the historical 25% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Foods and Inns is also expected to grow slower than other industry participants.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Foods and Inns. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Foods and Inns.

That said, this broker might have good reason to be negative on Foods and Inns, given its declining profit margins. Learn more, and discover the 4 other concerns we've identified, for free 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.