3M India Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a pretty great week for 3M India Limited (NSE:3MINDIA) shareholders, with its shares surging 12% to ₹20,194 in the week since its latest full-year results. Revenues were ₹33b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹241 were also better than expected, beating analyst predictions by 17%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for 3M India

After the latest results, the one analyst covering 3M India are now predicting revenues of ₹38.9b in 2023. If met, this would reflect a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to leap 33% to ₹320. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹38.5b and earnings per share (EPS) of ₹327 in 2023. 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 analyst did make a small dip in their earnings per share forecasts.

The average price target fell 10% to ₹26,000, with reduced earnings forecasts clearly tied to a lower valuation estimate.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the 3M India's past performance and to peers in the same industry. It's clear from the latest estimates that 3M India's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect 3M India to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst 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 sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of 3M India's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for 3M India going out as far as 2024, and you can see them free on our platform here.

We also provide an overview of the 3M India Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.