Thomas Cook (India) Limited (NSE:THOMASCOOK) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Investors in Thomas Cook (India) Limited (NSE:THOMASCOOK) had a good week, as its shares rose 7.7% to close at ₹95.12 following the release of its second-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹19b, statutory earnings were in line with expectations, at ₹4.69 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Thomas Cook (India)'s twin analysts are now forecasting revenues of ₹81.3b in 2027. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 12% to ₹4.90. Before this earnings report, the analysts had been forecasting revenues of ₹85.9b and earnings per share (EPS) of ₹6.60 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Thomas Cook (India)

The consensus price target fell 21% to ₹131, with the weaker earnings outlook clearly leading valuation estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Thomas Cook (India)'s revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2027 being well below the historical 25% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Thomas Cook (India).

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. 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. 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.

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 analyst estimates for Thomas Cook (India) going out as far as 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Thomas Cook (India) you should be aware of.

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