Motherson Sumi Wiring India Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Motherson Sumi Wiring India Limited (NSE:MSUMI) released its second-quarter result to the market. The early response was not positive, with shares down 3.8% to ₹63.25 in the past week. Revenues were in line with forecasts, at ₹23b, although statutory earnings per share came in 15% below what the analysts expected, at ₹0.34 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Motherson Sumi Wiring India

Taking into account the latest results, the consensus forecast from Motherson Sumi Wiring India's eleven analysts is for revenues of ₹93.4b in 2025. This reflects an okay 5.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.7% to ₹1.58. In the lead-up to this report, the analysts had been modelling revenues of ₹94.6b and earnings per share (EPS) of ₹1.75 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹75.18, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Motherson Sumi Wiring India analyst has a price target of ₹88.00 per share, while the most pessimistic values it at ₹68.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. It's pretty clear that there is an expectation that Motherson Sumi Wiring India's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past year. Compare this to the 130 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Motherson Sumi Wiring India's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Motherson Sumi Wiring India. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹75.18, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Motherson Sumi Wiring India going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Motherson Sumi Wiring 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.