Analysts Have Made A Financial Statement On Orkla India Limited's (NSE:ORKLAINDIA) First-Quarter Report
Orkla India Limited (NSE:ORKLAINDIA) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Orkla India reported in line with analyst predictions, delivering revenues of ₹6.6b and statutory earnings per share of ₹20.80, suggesting the business is executing well and in line with its plan. 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 current consensus from Orkla India's six analysts is for revenues of ₹27.9b in 2027. This would reflect a meaningful 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 12% to ₹24.08. In the lead-up to this report, the analysts had been modelling revenues of ₹27.8b and earnings per share (EPS) of ₹23.71 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.
See our latest analysis for Orkla India
The analysts reconfirmed their price target of ₹742, showing that the business is executing well and in line with expectations. 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 Orkla India at ₹800 per share, while the most bearish prices it at ₹680. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Orkla India's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Orkla India 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 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Orkla India going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Orkla India's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.