Earnings Miss: Suprajit Engineering Limited Missed EPS By 99% And Analysts Are Revising Their Forecasts

It's been a mediocre week for Suprajit Engineering Limited (NSE:SUPRAJIT) shareholders, with the stock dropping 17% to ₹441 in the week since its latest second-quarter results. Revenue of ₹8.3b surpassed estimates by 5.3%, although statutory earnings per share missed badly, coming in 99% below expectations at ₹0.03 per share. 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.

Check out our latest analysis for Suprajit Engineering

Taking into account the latest results, the most recent consensus for Suprajit Engineering from eight analysts is for revenues of ₹34.1b in 2025. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 23% to ₹12.35. Before this earnings report, the analysts had been forecasting revenues of ₹34.1b and earnings per share (EPS) of ₹15.84 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

The average price target fell 7.2% to ₹544, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Suprajit Engineering, with the most bullish analyst valuing it at ₹729 and the most bearish at ₹400 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Suprajit Engineering's growth to accelerate, with the forecast 23% annualised growth to the end of 2025 ranking favourably alongside historical growth of 17% per annum 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Suprajit Engineering 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. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Suprajit Engineering's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Suprajit Engineering. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Suprajit Engineering analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Suprajit Engineering 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.