Stock Analysis

Revenue Miss: Hindustan Foods Limited Fell 9.9% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

NSEI:HNDFDS
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The analyst might have been a bit too bullish on Hindustan Foods Limited (NSE:HNDFDS), given that the company fell short of expectations when it released its yearly results last week. Results look to have been somewhat negative - revenue fell 9.9% short of analyst estimates at ₹28b, and statutory earnings of ₹8.23 per share missed forecasts by 4.3%. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Hindustan Foods after the latest results.

View our latest analysis for Hindustan Foods

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NSEI:HNDFDS Earnings and Revenue Growth May 25th 2024

Following the latest results, Hindustan Foods' solitary analyst are now forecasting revenues of ₹38.6b in 2025. This would be a sizeable 40% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to ₹11.10. Before this earnings report, the analyst had been forecasting revenues of ₹38.6b and earnings per share (EPS) of ₹11.20 in 2025. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹686.

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. We can infer from the latest estimates that forecasts expect a continuation of Hindustan Foods'historical trends, as the 40% annualised revenue growth to the end of 2025 is roughly in line with the 34% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.9% per year. So although Hindustan Foods is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Hindustan Foods going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Hindustan Foods you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether Hindustan Foods is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.