Sansera Engineering Limited Just Missed EPS By 6.2%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Sansera Engineering Limited (NSE:SANSERA), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Sansera Engineering missed analyst forecasts, with revenues of ₹7.6b and statutory earnings per share (EPS) of ₹9.38, falling short by 2.8% and 6.2% respectively. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Sansera Engineering

Following the latest results, Sansera Engineering's eight analysts are now forecasting revenues of ₹32.4b in 2025. This would be a notable 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 39% to ₹43.66. In the lead-up to this report, the analysts had been modelling revenues of ₹33.3b and earnings per share (EPS) of ₹47.12 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹1,571 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Sansera Engineering, with the most bullish analyst valuing it at ₹1,892 and the most bearish at ₹1,325 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sansera Engineering's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% 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 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹1,571, 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 estimates - from multiple Sansera Engineering analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Sansera Engineering 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.