Stock Analysis

Kolte-Patil Developers Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

NSEI:KOLTEPATIL
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It's been a sad week for Kolte-Patil Developers Limited (NSE:KOLTEPATIL), who've watched their investment drop 12% to ₹462 in the week since the company reported its yearly result. It was a pretty negative result overall, with revenues of ₹14b missing analyst predictions by 4.6%. Worse, the business reported a statutory loss of ₹9.12 per share, a substantial decline on analyst expectations of a profit. 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 Kolte-Patil Developers

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NSEI:KOLTEPATIL Earnings and Revenue Growth May 29th 2024

Taking into account the latest results, the current consensus from Kolte-Patil Developers' five analysts is for revenues of ₹19.4b in 2025. This would reflect a major 39% increase on its revenue over the past 12 months. Earnings are expected to improve, with Kolte-Patil Developers forecast to report a statutory profit of ₹13.60 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.9b and earnings per share (EPS) of ₹13.57 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹678, implying that the uplift in revenue is not expected to greatly contribute to Kolte-Patil Developers's valuation in the near term. 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 Kolte-Patil Developers at ₹728 per share, while the most bearish prices it at ₹624. This is a very narrow spread of estimates, implying either that Kolte-Patil Developers is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Kolte-Patil Developers' rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kolte-Patil Developers is expected to grow much faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹678, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kolte-Patil Developers. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kolte-Patil Developers analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Kolte-Patil Developers (1 doesn't sit too well with us!) that you need to take into consideration.

Valuation is complex, but we're here to simplify it.

Discover if Kolte-Patil Developers might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.