Rallis India Limited Just Recorded A 25% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Rallis India Limited (NSE:RALLIS) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of ₹10b, some 7.9% above estimates, and statutory earnings per share (EPS) coming in at ₹6.43, 25% ahead of expectations. 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. 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 current consensus from Rallis India's 15 analysts is for revenues of ₹31.9b in 2027. This would reflect a satisfactory 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 13% to ₹12.38. In the lead-up to this report, the analysts had been modelling revenues of ₹32.6b and earnings per share (EPS) of ₹12.41 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Rallis India

There were no changes to revenue or earnings estimates or the price target of ₹276, suggesting that the company has met expectations in its recent result. 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 Rallis India at ₹315 per share, while the most bearish prices it at ₹216. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Rallis India's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.6% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Rallis India is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Rallis India. Long-term earnings power is much more important than next year's profits. We have forecasts for Rallis India going out to 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Rallis India that you need to be mindful of.

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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.