K.P.R. Mill Limited Just Beat EPS By 42%: Here's What Analysts Think Will Happen Next
K.P.R. Mill Limited (NSE:KPRMILL) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹19b, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at ₹10.09, 42% ahead of expectations. 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.
Taking into account the latest results, the consensus forecast from K.P.R. Mill's 13 analysts is for revenues of ₹77.2b in 2027. This reflects a modest 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.4% to ₹31.74. Before this earnings report, the analysts had been forecasting revenues of ₹76.0b and earnings per share (EPS) of ₹30.88 in 2027. So the consensus seems to have become somewhat more optimistic on K.P.R. Mill's earnings potential following these results.
See our latest analysis for K.P.R. Mill
The consensus price target was unchanged at ₹1,223, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values K.P.R. Mill at ₹1,380 per share, while the most bearish prices it at ₹1,021. This is a very narrow spread of estimates, implying either that K.P.R. Mill is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the K.P.R. Mill's past performance and to peers in the same industry. The analysts are definitely expecting K.P.R. Mill's growth to accelerate, with the forecast 17% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. K.P.R. Mill 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 takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around K.P.R. Mill's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on K.P.R. Mill. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple K.P.R. Mill analysts - going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with K.P.R. Mill .
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