HIL Limited Just Missed EPS By 17%: Here's What Analysts Think Will Happen Next

HIL Limited (NSE:HIL) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to ₹2,496 in the week after its latest full-year results. Revenues were in line with forecasts, at ₹34b, although statutory earnings per share came in 17% below what the analysts expected, at ₹46.15 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for HIL

Taking into account the latest results, the current consensus from HIL's two analysts is for revenues of ₹37.6b in 2025. This would reflect a notable 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 237% to ₹155. Before this earnings report, the analysts had been forecasting revenues of ₹37.7b and earnings per share (EPS) of ₹176 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,991, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting HIL's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 5.0% annually. It seems obvious that as part of the brighter growth outlook, HIL is expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for HIL. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that HIL's revenue is expected to perform better 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.

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 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with HIL .

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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.