Earnings Miss: E.I.D.- Parry (India) Limited Missed EPS By 38% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that E.I.D.- Parry (India) Limited (NSE:EIDPARRY) filed its full-year result this time last week. The early response was not positive, with shares down 7.5% to ₹417 in the past week. It looks like a pretty bad result, all things considered. Although revenues of ₹186b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 38% to hit ₹25.15 per share. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on E.I.D.- Parry (India) after the latest results.

Check out our latest analysis for E.I.D.- Parry (India)

Taking into account the latest results, the consensus forecast from E.I.D.- Parry (India)'s sole analyst is for revenues of ₹212.0b in 2022, which would reflect a notable 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 128% to ₹57.70. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹206.9b and earnings per share (EPS) of ₹55.50 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 10% to ₹539per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the E.I.D.- Parry (India)'s past performance and to peers in the same industry. The analyst is definitely expecting E.I.D.- Parry (India)'s growth to accelerate, with the forecast 14% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that E.I.D.- Parry (India) is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards E.I.D.- Parry (India) following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analyst 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 least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for E.I.D.- Parry (India) that we have uncovered.

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