Stock Analysis

Sansera Engineering Limited (NSE:SANSERA) Just Released Its First-Quarter Earnings: Here's What Analysts Think

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NSEI:SANSERA

Sansera Engineering Limited (NSE:SANSERA) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to ₹1,394 in the week after its latest first-quarter results. Revenues came in 3.6% below expectations, at ₹7.4b. Statutory earnings per share were relatively better off, with a per-share profit of ₹9.16 being roughly in line with analyst estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Sansera Engineering

NSEI:SANSERA Earnings and Revenue Growth August 11th 2024

Taking into account the latest results, the most recent consensus for Sansera Engineering from ten analysts is for revenues of ₹33.1b in 2025. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 33% to ₹47.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹32.9b and earnings per share (EPS) of ₹47.95 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of ₹1,408, suggesting that the company has met expectations in its recent result. 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. The most optimistic Sansera Engineering analyst has a price target of ₹1,625 per share, while the most pessimistic values it at ₹1,205. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Sansera Engineering'shistorical trends, as the 19% annualised revenue growth to the end of 2025 is roughly in line with the 17% 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 11% per year. So it's pretty clear that Sansera Engineering is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

Before you take the next step you should know about the 1 warning sign for Sansera Engineering that we have uncovered.

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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.