Heritage Foods Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Heritage Foods Limited (NSE:HERITGFOOD) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.6% to ₹566. Revenues were ₹10b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹6.30 were also better than expected, beating analyst predictions by 13%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Heritage Foods

Following the latest results, Heritage Foods' four analysts are now forecasting revenues of ₹41.7b in 2025. This would be a credible 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.6% to ₹17.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹42.0b and earnings per share (EPS) of ₹16.17 in 2025. So the consensus seems to have become somewhat more optimistic on Heritage Foods' earnings potential following these results.

The consensus price target rose 29% to ₹570, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Heritage Foods at ₹650 per share, while the most bearish prices it at ₹450. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.3% growth on an annualised basis. That is in line with its 8.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. So although Heritage Foods is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Heritage Foods' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Heritage Foods going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Heritage Foods you should be aware of, and 1 of them can't be ignored.

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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.

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