Here's What Analysts Are Forecasting For Shoppers Stop Limited (NSE:SHOPERSTOP) After Its Third-Quarter Results

As you might know, Shoppers Stop Limited (NSE:SHOPERSTOP) recently reported its third-quarter numbers. Results overall were respectable, with statutory earnings of ₹10.51 per share roughly in line with what the analysts had forecast. Revenues of ₹12b came in 3.9% ahead of analyst predictions. 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.

Check out our latest analysis for Shoppers Stop

Taking into account the latest results, the current consensus from Shoppers Stop's nine analysts is for revenues of ₹51.7b in 2025. This would reflect a huge 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 195% to ₹18.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹54.3b and earnings per share (EPS) of ₹17.93 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been no real change to the average price target of ₹833, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. The most optimistic Shoppers Stop analyst has a price target of ₹1,100 per share, while the most pessimistic values it at ₹675. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that Shoppers Stop's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.4% 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 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shoppers Stop is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shoppers Stop's earnings potential next year. They also downgraded Shoppers Stop's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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.

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 forecasts for Shoppers Stop going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Shoppers Stop has 2 warning signs (and 1 which is concerning) we think you should know about.

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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.