Vishal Mega Mart Limited (NSE:VMM) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a pretty great week for Vishal Mega Mart Limited (NSE:VMM) shareholders, with its shares surging 13% to ₹121 in the week since its latest full-year results. Vishal Mega Mart reported ₹107b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹1.36 beat expectations, being 4.3% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Vishal Mega Mart from seven analysts is for revenues of ₹128.3b in 2026. If met, it would imply a meaningful 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 27% to ₹1.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹126.5b and earnings per share (EPS) of ₹1.69 in 2026. So the consensus seems to have become somewhat more optimistic on Vishal Mega Mart's earnings potential following these results.

See our latest analysis for Vishal Mega Mart

There's been no major changes to the consensus price target of ₹130, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Vishal Mega Mart at ₹161 per share, while the most bearish prices it at ₹90.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Vishal Mega Mart'shistorical trends, as the 20% annualised revenue growth to the end of 2026 is roughly in line with the 19% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.7% per year. So although Vishal Mega Mart is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vishal Mega Mart's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹130, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Vishal Mega Mart analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.