Shriram Pistons & Rings Limited (NSE:SHRIPISTON) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week saw the newest quarterly earnings release from Shriram Pistons & Rings Limited (NSE:SHRIPISTON), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹8.5b were in line with what the analyst predicted, Shriram Pistons & Rings surprised by delivering a statutory profit of ₹27.22 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Shriram Pistons & Rings

Taking into account the latest results, the consensus forecast from Shriram Pistons & Rings' lone analyst is for revenues of ₹40.0b in 2026. This reflects a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 25% to ₹137. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹38.6b and earnings per share (EPS) of ₹133 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 18% to ₹2,950per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% 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% annually. So it's pretty clear that, while Shriram Pistons & Rings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shriram Pistons & Rings following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 still need to take note of risks, for example - Shriram Pistons & Rings has 1 warning sign we think 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.