Results: Kalpataru Projects International Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Kalpataru Projects International Limited (NSE:KPIL) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.5% to ₹1,365. Revenues were ₹64b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹18.16, an impressive 38% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Kalpataru Projects International's twelve analysts are forecasting 2027 revenues to be ₹268.9b, approximately in line with the last 12 months. Statutory earnings per share are predicted to step up 10% to ₹73.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹307.2b and earnings per share (EPS) of ₹71.20 in 2027. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a real cut to revenues at the same time as boosting EPS forecasts.

See our latest analysis for Kalpataru Projects International

There's been no real change to the average price target of ₹1,596, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Kalpataru Projects International, with the most bullish analyst valuing it at ₹1,865 and the most bearish at ₹1,249 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kalpataru Projects International's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.7% annualised decline to the end of 2027. That is a notable change from historical growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that Kalpataru Projects International's revenues are expected to perform substantially worse 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 Kalpataru Projects International's earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at ₹1,596, 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 Kalpataru Projects International analysts - going out to 2029, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Kalpataru Projects International 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.