Stock Analysis
EPL Limited Just Recorded A 8.1% EPS Beat: Here's What Analysts Are Forecasting Next
It's been a good week for EPL Limited (NSE:EPL) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.4% to ₹248. EPL missed revenue estimates by 4.9%, coming in at₹10b, although statutory earnings per share (EPS) of ₹2.92 beat expectations, coming in 8.1% ahead of analyst estimates. 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 EPL
Taking into account the latest results, the most recent consensus for EPL from nine analysts is for revenues of ₹47.2b in 2026. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 58% to ₹13.25. Before this earnings report, the analysts had been forecasting revenues of ₹47.9b and earnings per share (EPS) of ₹13.45 in 2026. 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.
There were no changes to revenue or earnings estimates or the price target of ₹314, suggesting that the company has met expectations in its recent result. 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. The most optimistic EPL analyst has a price target of ₹350 per share, while the most pessimistic values it at ₹290. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. The analysts are definitely expecting EPL's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that EPL is expected to grow at about the same rate as 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 analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹314, 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 see whether EPL is carrying too much debt, and whether its balance sheet is healthy, 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.
About NSEI:EPL
EPL
Manufactures and sells plastic packaging materials in the form of multilayer collapsible tubes, corrugated boxes, and laminates.