Stock Analysis

Sandhar Technologies Limited Just Beat Revenue By 5.9%: Here's What Analysts Think Will Happen Next

NSEI:SANDHAR
Source: Shutterstock

Sandhar Technologies Limited (NSE:SANDHAR) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of ₹18.32 per share roughly in line with what the analysts had forecast. Revenues of ₹9.8b came in 5.9% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Sandhar Technologies

earnings-and-revenue-growth
NSEI:SANDHAR Earnings and Revenue Growth November 14th 2024

Taking into account the latest results, the current consensus from Sandhar Technologies' twin analysts is for revenues of ₹39.9b in 2025. This would reflect an okay 7.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.3% to ₹23.00. In the lead-up to this report, the analysts had been modelling revenues of ₹40.0b and earnings per share (EPS) of ₹22.20 in 2025. So the consensus seems to have become somewhat more optimistic on Sandhar Technologies' earnings potential following these results.

The consensus price target rose 47% to ₹775, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. We can infer from the latest estimates that forecasts expect a continuation of Sandhar Technologies'historical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Sandhar Technologies is forecast to grow substantially faster than its 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 Sandhar Technologies following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Sandhar Technologies you should know about.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.