Stock Analysis

Earnings Miss: Uno Minda Limited Missed EPS By 6.9% And Analysts Are Revising Their Forecasts

NSEI:UNOMINDA
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Last week, you might have seen that Uno Minda Limited (NSE:UNOMINDA) released its third-quarter result to the market. The early response was not positive, with shares down 7.0% to ₹640 in the past week. Revenues of ₹35b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹3.37, missing estimates by 6.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Uno Minda after the latest results.

View our latest analysis for Uno Minda

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NSEI:UNOMINDA Earnings and Revenue Growth February 10th 2024

Taking into account the latest results, the consensus forecast from Uno Minda's 16 analysts is for revenues of ₹163.0b in 2025. This reflects a substantial 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 38% to ₹18.66. Before this earnings report, the analysts had been forecasting revenues of ₹163.1b and earnings per share (EPS) of ₹18.64 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹723, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Uno Minda at ₹820 per share, while the most bearish prices it at ₹620. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Uno Minda is forecast to grow substantially faster than its 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Uno Minda going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Uno Minda you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether Uno Minda is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.