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Grill Nation Hotel Ltd. (NSE:BARBEQUE) reported its latest quarterly results last week, which is a good time for investors to take a closer look at whether the business is performing as expected. Overall, it was a credible result, with revenue of ₹3.3b and statutory earnings per share of ₹4.32, both in line with analysts’ expectations, indicating that Barbeque-Nation Hospitality is executing as expected. Earnings take-up is an important time for investors, as they can track a company’s performance, see what analysts are forecasting for next year, and see if sentiment toward the company has changed. We’ve gathered the latest statutory forecasts to see if the analysts have changed their profit models in light of the results.
Check out our latest analysis for Grill Nation Hospitality
Taking into account the latest results, Barbeque-Nation Hospitality’s three analysts are now in consensus for revenue in 2025 of ₹14.4b. This would reflect a 16% increase in its revenue over the past 12 months. Earnings are expected to improve, with Barbeque-Nation Hospitality forecasting statutory profits of 6.47 rupees per share. However, ahead of the latest earnings, analysts were expecting revenue of ₹14.9b and earnings per share (EPS) of ₹10.40 in 2025. From this, we can see that market sentiment has definitely become more bearish following the latest earnings release, leading to lower revenue forecasts and a significant reduction in EPS estimates.
Despite the profit forecast cut, there was no actual change to the price target of Rs 771, suggesting analysts do not believe the changes will have a meaningful impact on its intrinsic value. The consensus price target is just an average of the individual analyst targets, so it’s a handy idea of how wide the range among the underlying estimates is. There are some varying sentiments on Barbeque-Nation Hospitality, with the most bullish analyst valuing it at ₹913 per share and the most pessimistic valuing it at ₹675 per share. This suggests there’s still some variation in estimates, but analysts don’t seem entirely divided on the stock, as if it could be a success or failure situation.
One way to get more context on these forecasts is to see how they compare to both past performance and how other companies in the same industry have performed. We would like to highlight that Barbeque-Nation Hospitality’s revenue growth is expected to slow down, with an expected annualized growth rate of 13% by the end of 2025, well below the historical growth rate of 20% over the past five years. Compare this to the rest of the industry (based on analyst forecasts), which are expected to post a combined annual revenue growth rate of 17%. Given the forecast for slower growth, it’s clear that the Grill Country hospitality industry will also grow at a slower pace than other industry players.
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Most worrisome is analysts’ downward revisions to earnings-per-share estimates, a sign that Barbecue Nation’s hospitality industry may be facing business headwinds. On the negative side, they’ve also lowered their revenue estimates, and the forecast means they’ll perform worse than the industry as a whole. The consensus price target held steady at Rs 771, with the latest estimates not enough to have an impact on its price target.
With that in mind, we wouldn’t be too quick to jump to conclusions about this barbecue nation treat. Long-term profitability is much more important than next year’s profits. Here at Simply Wall St we have comprehensive analyst forecasts for Barbeque-Nation Hospitality’s prospects out to 2026, which you can view for free on our platform.
You can also see for free on our platform whether Barbeque-Nation Hospitality has too much debt, and whether its balance sheet is healthy.
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Find out if Barbeque-Nation Hospitality is potentially overvalued or undervalued by checking out our comprehensive analysis, including Fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This article from Simply Wall St is general in nature. We only use unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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