₹596 - That's What Analysts Think Westlife Foodworld Limited (NSE:WESTLIFE) Is Worth After These Results
It's been a good week for Westlife Foodworld Limited (NSE:WESTLIFE) shareholders, because the company has just released its latest interim results, and the shares gained 6.6% to ₹588. It looks like the results were pretty good overall. While revenues of ₹15b were in line with analyst predictions, statutory losses were much smaller than expected, with Westlife Foodworld losing ₹0.13 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Westlife Foodworld after the latest results.
Taking into account the latest results, the most recent consensus for Westlife Foodworld from 18 analysts is for revenues of ₹30.2b in 2027. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 1,381% to ₹1.85. In the lead-up to this report, the analysts had been modelling revenues of ₹29.7b and earnings per share (EPS) of ₹1.63 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.
View our latest analysis for Westlife Foodworld
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to ₹596. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Westlife Foodworld at ₹776 per share, while the most bearish prices it at ₹480. 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 Westlife Foodworld shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Westlife Foodworld's past performance and to peers in the same industry. The analysts are definitely expecting Westlife Foodworld's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Westlife Foodworld is expected to grow at about the same rate as 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 Westlife Foodworld's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Westlife Foodworld 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 3 warning signs for Westlife Foodworld (1 is a bit unpleasant!) that you need to be mindful of.
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