Shriram Pistons & Rings Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Shriram Pistons & Rings Limited (NSE:SHRIPISTON) just kicked off its latest first-quarter results with some very strong numbers. Shriram Pistons & Rings beat earnings, with revenues hitting ₹8.4b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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.

Check out our latest analysis for Shriram Pistons & Rings

Taking into account the latest results, the consensus forecast from Shriram Pistons & Rings' dual analysts is for revenues of ₹35.1b in 2025. This reflects a credible 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.6% to ₹114. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹35.6b and earnings per share (EPS) of ₹117 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹2,496, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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. It's pretty clear that there is an expectation that Shriram Pistons & Rings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Shriram Pistons & Rings.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shriram Pistons & Rings. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹2,496, 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Shriram Pistons & Rings you should be aware of.

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.