Nilkamal Limited Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

Nilkamal Limited (NSE:NILKAMAL) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to ₹2,072 in the week after its latest quarterly results. It was not a great result overall. While revenues of ₹8.0b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit ₹19.64 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Nilkamal

Taking into account the latest results, the current consensus from Nilkamal's lone analyst is for revenues of ₹37.7b in 2025. This would reflect a solid 18% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 21% to ₹109. In the lead-up to this report, the analyst had been modelling revenues of ₹39.3b and earnings per share (EPS) of ₹132 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹2,412 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nilkamal's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. 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. Nilkamal 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 important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹2,412, with the latest estimates not enough to have an impact on their price target.

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 analyst estimates for Nilkamal going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Nilkamal you should be aware of.

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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.