Sula Vineyards Limited Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Sula Vineyards Limited (NSE:SULA) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 8.1% to hit ₹1.1b. Sula Vineyards reported statutory earnings per share (EPS) ₹1.62, which was a notable 16% above what the analysts had forecast. The analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sula Vineyards

Taking into account the latest results, the current consensus from Sula Vineyards' three analysts is for revenues of ₹6.11b in 2024. This would reflect a solid 15% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to ₹11.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹6.06b and earnings per share (EPS) of ₹11.10 in 2024. So the consensus seems to have become somewhat more optimistic on Sula Vineyards' earnings potential following these results.

The consensus price target rose 6.3% to ₹505, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Sula Vineyards at ₹550 per share, while the most bearish prices it at ₹450. This is a very narrow spread of estimates, implying either that Sula Vineyards is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Sula Vineyards'historical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.8% annually. So it's pretty clear that Sula Vineyards is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sula Vineyards' earnings potential next year. 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sula Vineyards going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sula Vineyards you should know about.

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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.