Sula Vineyards Limited Just Missed EPS By 67%: Here's What Analysts Think Will Happen Next

Sula Vineyards Limited (NSE:SULA) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Unfortunately, Sula Vineyards delivered a serious earnings miss. Revenues of ₹1.8b were 10% below expectations, and statutory earnings per share of ₹1.08 missed estimates by 67%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Sula Vineyards' five analysts is for revenues of ₹6.50b in 2027. This would reflect a solid 19% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 164% to ₹9.40. In the lead-up to this report, the analysts had been modelling revenues of ₹6.66b and earnings per share (EPS) of ₹9.66 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Sula Vineyards

It'll come as no surprise then, to learn that the analysts have cut their price target 5.5% to ₹243. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sula Vineyards, with the most bullish analyst valuing it at ₹280 and the most bearish at ₹202 per share. 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 Sula Vineyards shareholders.

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. The analysts are definitely expecting Sula Vineyards' growth to accelerate, with the forecast 15% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.9% per annum 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. Sula Vineyards 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sula Vineyards. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sula Vineyards' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sula Vineyards going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Sula Vineyards (1 makes us a bit uncomfortable) you should be aware 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.