Sona BLW Precision Forgings Limited (NSE:SONACOMS) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Investors in Sona BLW Precision Forgings Limited (NSE:SONACOMS) had a good week, as its shares rose 9.5% to close at ₹497 following the release of its yearly results. Results were roughly in line with estimates, with revenues of ₹35b and statutory earnings per share of ₹9.92. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Sona BLW Precision Forgings from twelve analysts is for revenues of ₹46.5b in 2026. If met, it would imply a sizeable 31% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 27% to ₹12.31. In the lead-up to this report, the analysts had been modelling revenues of ₹46.4b and earnings per share (EPS) of ₹12.86 in 2026. 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.

View our latest analysis for Sona BLW Precision Forgings

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹579, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sona BLW Precision Forgings, with the most bullish analyst valuing it at ₹791 and the most bearish at ₹430 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 clear from the latest estimates that Sona BLW Precision Forgings' rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

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 2028, 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.