Sansera Engineering Limited (NSE:SANSERA) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Explore Sansera Engineering's Fair Values from the Community and select yours

As you might know, Sansera Engineering Limited (NSE:SANSERA) recently reported its quarterly numbers. The result was positive overall - although revenues of ₹7.7b were in line with what the analysts predicted, Sansera Engineering surprised by delivering a statutory profit of ₹10.01 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Sansera Engineering from eight analysts is for revenues of ₹33.6b in 2026. If met, it would imply a meaningful 10.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 26% to ₹46.32. Before this earnings report, the analysts had been forecasting revenues of ₹34.7b and earnings per share (EPS) of ₹50.34 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Sansera Engineering

The analysts made no major changes to their price target of ₹1,498, suggesting the downgrades are not expected to have a long-term impact on Sansera Engineering's valuation. 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. The most optimistic Sansera Engineering analyst has a price target of ₹1,600 per share, while the most pessimistic values it at ₹1,425. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Sansera Engineering'shistorical trends, as the 13% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So although Sansera Engineering is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Sansera Engineering. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sansera Engineering analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.