Sona BLW Precision Forgings Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Sona BLW Precision Forgings Limited (NSE:SONACOMS) just released its second-quarter report and things are looking bullish. Sona BLW Precision Forgings delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹11b-11% above indicated-and₹2.78-26% above forecasts- respectively 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Sona BLW Precision Forgings from 15 analysts is for revenues of ₹45.0b in 2026. If met, it would imply a major 21% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to ₹11.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹44.9b and earnings per share (EPS) of ₹10.87 in 2026. 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.

Check out our latest analysis for Sona BLW Precision Forgings

The analysts reconfirmed their price target of ₹536, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sona BLW Precision Forgings analyst has a price target of ₹610 per share, while the most pessimistic values it at ₹445. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 clear from the latest estimates that Sona BLW Precision Forgings' rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 15% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sona BLW Precision Forgings to grow faster than the wider 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. The consensus price target held steady at ₹536, 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. We have estimates - from multiple Sona BLW Precision Forgings analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Sona BLW Precision Forgings that you need to be mindful 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.