Earnings Update: Sansera Engineering Limited (NSE:SANSERA) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

A week ago, Sansera Engineering Limited (NSE:SANSERA) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of ₹20b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were ₹24.36, 2.4% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sansera Engineering

After the latest results, the two analysts covering Sansera Engineering are now predicting revenues of ₹24.3b in 2023. If met, this would reflect a huge 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 38% to ₹34.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹23.8b and earnings per share (EPS) of ₹32.55 in 2023. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹934, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Sansera Engineering's growth to accelerate, with the forecast 22% annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sansera Engineering is expected to grow much 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 Sansera Engineering following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹934, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sansera Engineering going out as far as 2024, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Sansera Engineering that you need to be mindful 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.