Shoppers Stop Limited Just Beat Revenue Estimates By 6.8%

It's been a good week for Shoppers Stop Limited (NSE:SHOPERSTOP) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.5% to ₹631. It was a workmanlike result, with revenues of ₹14b coming in 6.8% ahead of expectations, and statutory earnings per share of ₹7.00, in line with analyst appraisals. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Shoppers Stop

Taking into account the latest results, the most recent consensus for Shoppers Stop from six analysts is for revenues of ₹53.4b in 2026. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 309% to ₹11.92. Before this earnings report, the analysts had been forecasting revenues of ₹55.9b and earnings per share (EPS) of ₹10.27 in 2026. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the substantial gain in to the earnings per share numbers.

The consensus has made no major changes to the price target of ₹766, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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 ₹1,000 per share, while the most pessimistic values it at ₹600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We can infer from the latest estimates that forecasts expect a continuation of Shoppers Stop'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.7% annually. So it's pretty clear that Shoppers Stop is forecast to grow substantially 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, earnings per share are more important to the intrinsic value of the business. 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. At Simply Wall St, we have a full range of analyst estimates for Shoppers Stop going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Shoppers Stop (including 1 which shouldn't be ignored) .

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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.