Shoppers Stop Limited Just Missed EPS By 46%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Shoppers Stop Limited (NSE:SHOPERSTOP) released its full-year result to the market. The early response was not positive, with shares down 9.2% to ₹510 in the past week. Statutory earnings per share fell badly short of expectations, coming in at ₹0.99, some 46% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹46b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the six analysts covering Shoppers Stop are now predicting revenues of ₹51.2b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 481% to ₹5.75. In the lead-up to this report, the analysts had been modelling revenues of ₹54.7b and earnings per share (EPS) of ₹10.27 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

See our latest analysis for Shoppers Stop

It'll come as no surprise then, to learn that the analysts have cut their price target 7.3% to ₹712. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Shoppers Stop at ₹1,016 per share, while the most bearish prices it at ₹535. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Shoppers Stop's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% annually. Even after the forecast slowdown in growth, it seems obvious that Shoppers Stop is also 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Shoppers Stop analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Shoppers Stop (1 is significant!) that we have uncovered.

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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.