Vedant Fashions Limited Just Missed Earnings - But Analysts Have Updated Their Models

The quarterly results for Vedant Fashions Limited (NSE:MANYAVAR) were released last week, making it a good time to revisit its performance. Revenues of ₹2.7b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹2.31, missing estimates by 9.4%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Vedant Fashions' nine analysts is for revenues of ₹15.2b in 2027. This would reflect a modest 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.4% to ₹16.42. Before this earnings report, the analysts had been forecasting revenues of ₹15.4b and earnings per share (EPS) of ₹16.61 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Vedant Fashions

There were no changes to revenue or earnings estimates or the price target of ₹506, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Vedant Fashions at ₹640 per share, while the most bearish prices it at ₹372. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Vedant Fashions shareholders.

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 can infer from the latest estimates that forecasts expect a continuation of Vedant Fashions'historical trends, as the 7.7% annualised revenue growth to the end of 2027 is roughly in line with the 6.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 14% annually. So it's pretty clear that Vedant Fashions is expected to grow slower than similar companies in the same industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vedant Fashions going out to 2029, and you can see them free on our platform here.

We also provide an overview of the Vedant Fashions Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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