The Flair Writing Industries Limited (NSE:FLAIR) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
Investors in Flair Writing Industries Limited (NSE:FLAIR) had a good week, as its shares rose 2.6% to close at ₹239 following the release of its second-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹3.4b, statutory earnings were in line with expectations, at ₹13.26 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the five analysts covering Flair Writing Industries are now predicting revenues of ₹13.8b in 2027. If met, this would reflect a satisfactory 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.0% to ₹12.80. In the lead-up to this report, the analysts had been modelling revenues of ₹14.4b and earnings per share (EPS) of ₹14.44 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
View our latest analysis for Flair Writing Industries
Despite the cuts to forecast earnings, there was no real change to the ₹433 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Flair Writing Industries at ₹480 per share, while the most bearish prices it at ₹391. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 12% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Flair Writing Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Flair Writing Industries. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
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. We have forecasts for Flair Writing Industries going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Flair Writing Industries that you should be aware of.
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