Bearish: This Analyst Is Revising Their Dynamatic Technologies Limited (NSE:DYNAMATECH) Revenue and EPS Prognostications

One thing we could say about the covering analyst on Dynamatic Technologies Limited (NSE:DYNAMATECH) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, Dynamatic Technologies' one analyst currently expects revenues in 2025 to be ₹14b, approximately in line with the last 12 months. Statutory earnings per share are supposed to nosedive 40% to ₹74.30 in the same period. Prior to this update, the analyst had been forecasting revenues of ₹17b and earnings per share (EPS) of ₹190 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Dynamatic Technologies

It'll come as no surprise then, to learn that the analyst has cut their price target 9.0% to ₹9,330.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.7% by the end of 2025. This indicates a significant reduction from annual growth of 4.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dynamatic Technologies is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Dynamatic Technologies. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Dynamatic Technologies' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.