HIL Limited (NSE:HIL) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Shareholders might have noticed that HIL Limited (NSE:HIL) filed its quarterly result this time last week. The early response was not positive, with shares down 8.1% to ₹2,509 in the past week. Revenues came in 3.5% below expectations, at ₹7.7b. Statutory earnings per share were relatively better off, with a per-share profit of ₹46.15 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for HIL

Taking into account the latest results, the consensus forecast from HIL's two analysts is for revenues of ₹36.7b in 2025. This reflects a satisfactory 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 83% to ₹4.60 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹38.7b and earnings per share (EPS) of ₹5.70 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.9% to ₹3,023.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting HIL's growth to accelerate, with the forecast 7.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.2% per year. 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of HIL's future valuation.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with HIL (including 1 which is concerning) .

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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.