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Sansera Engineering Limited Just Missed Revenue By 5.4%: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that Sansera Engineering Limited (NSE:SANSERA) filed its third-quarter result this time last week. The early response was not positive, with shares down 4.6% to ₹1,209 in the past week. Revenues came in 5.4% below expectations, at ₹7.3b. Statutory earnings per share were relatively better off, with a per-share profit of ₹9.14 being roughly in line with analyst 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sansera Engineering after the latest results.
See our latest analysis for Sansera Engineering
After the latest results, the ten analysts covering Sansera Engineering are now predicting revenues of ₹37.2b in 2026. If met, this would reflect a substantial 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 75% to ₹57.07. Before this earnings report, the analysts had been forecasting revenues of ₹38.1b and earnings per share (EPS) of ₹59.37 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the ₹1,615 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Sansera Engineering at ₹2,000 per share, while the most bearish prices it at ₹1,330. 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.
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 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 2026 noticeably faster than its historical growth of 16% p.a. 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 10% 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. They also downgraded Sansera Engineering's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,615, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sansera Engineering going out to 2027, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Sansera Engineering that you need to take into consideration.
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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.
About NSEI:SANSERA
Sansera Engineering
Engages in the manufacture and sale of precision engineered components for automotive and non-automotive sectors in India, Europe, the United States, and internationally.
Solid track record with excellent balance sheet.
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