Minda Corporation Limited (NSE:MINDACORP) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Minda Corporation Limited (NSE:MINDACORP) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.2% to ₹521. Results were roughly in line with estimates, with revenues of ₹12b and statutory earnings per share of ₹9.49. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Minda after the latest results.

See our latest analysis for Minda

Taking into account the latest results, the current consensus from Minda's five analysts is for revenues of ₹53.9b in 2025. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 30% to ₹13.60. Before this earnings report, the analysts had been forecasting revenues of ₹53.6b and earnings per share (EPS) of ₹13.27 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to ₹503. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Minda at ₹585 per share, while the most bearish prices it at ₹450. This is a very narrow spread of estimates, implying either that Minda 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 Minda's past performance and to peers in the same industry. It's clear from the latest estimates that Minda's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Minda to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Minda following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Minda analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Minda has 1 warning sign we think you should be aware of.

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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.