Sona BLW Precision Forgings Limited Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Sona BLW Precision Forgings Limited (NSE:SONACOMS) released its third-quarter result to the market. The early response was not positive, with shares down 8.6% to ₹525 in the past week. Revenues were ₹8.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹2.43 were also better than expected, beating analyst predictions by 16%. 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.

See our latest analysis for Sona BLW Precision Forgings

Following the latest results, Sona BLW Precision Forgings' 14 analysts are now forecasting revenues of ₹48.4b in 2026. This would be a major 36% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 48% to ₹13.94. In the lead-up to this report, the analysts had been modelling revenues of ₹51.7b and earnings per share (EPS) of ₹15.74 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to ₹664. 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. There are some variant perceptions on Sona BLW Precision Forgings, with the most bullish analyst valuing it at ₹791 and the most bearish at ₹570 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sona BLW Precision Forgings' growth to accelerate, with the forecast 28% annualised growth to the end of 2026 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Sona BLW Precision Forgings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sona BLW Precision Forgings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sona BLW Precision Forgings going out to 2027, 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.