Motherson Sumi Wiring India Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Motherson Sumi Wiring India Limited (NSE:MSUMI) released its first-quarter result to the market. The early response was not positive, with shares down 9.1% to ₹37.77 in the past week. Motherson Sumi Wiring India beat revenue expectations by 2.8%, at ₹25b. Statutory earnings per share (EPS) came in at ₹0.22, some 5.7% short of analyst estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the current consensus from Motherson Sumi Wiring India's 13 analysts is for revenues of ₹106.6b in 2026. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 18% to ₹1.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹106.1b and earnings per share (EPS) of ₹1.15 in 2026. 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 small dip in their earnings per share forecasts.

See our latest analysis for Motherson Sumi Wiring India

The consensus price target held steady at ₹45.64, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Motherson Sumi Wiring India at ₹57.00 per share, while the most bearish prices it at ₹37.33. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.0% annually. So it's pretty clear that Motherson Sumi Wiring India is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹45.64, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Motherson Sumi Wiring India. Long-term earnings power is much more important than next year's profits. We have forecasts for Motherson Sumi Wiring India going out to 2028, and you can see them free on our platform here.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.