EPL Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders might have noticed that EPL Limited (NSE:EPL) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.4% to ₹267 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹11b, statutory earnings beat expectations by a notable 11%, coming in at ₹2.72 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for EPL

Taking into account the latest results, the current consensus from EPL's nine analysts is for revenues of ₹43.1b in 2025. This would reflect a credible 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 29% to ₹10.55. In the lead-up to this report, the analysts had been modelling revenues of ₹43.3b and earnings per share (EPS) of ₹10.51 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of ₹308, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values EPL at ₹360 per share, while the most bearish prices it at ₹264. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EPL's past performance and to peers in the same industry. It's clear from the latest estimates that EPL's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. EPL is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹308, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple EPL analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of EPL's balance sheet, and whether we think EPL is carrying too much debt, 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.