Analyst Estimates: Here's What Brokers Think Of Grindwell Norton Limited (NSE:GRINDWELL) After Its Annual Report

Last week saw the newest annual earnings release from Grindwell Norton Limited (NSE:GRINDWELL), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of ₹28b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.6% to hit ₹34.65 per share. 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.

View our latest analysis for Grindwell Norton

Taking into account the latest results, the most recent consensus for Grindwell Norton from five analysts is for revenues of ₹31.0b in 2025. If met, it would imply a decent 12% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 19% to ₹41.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹31.6b and earnings per share (EPS) of ₹43.32 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹2,262, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Grindwell Norton, with the most bullish analyst valuing it at ₹2,521 and the most bearish at ₹2,169 per share. This is a very narrow spread of estimates, implying either that Grindwell Norton is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. It's clear that while Grindwell Norton's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Grindwell Norton. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹2,262, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Grindwell Norton analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Grindwell Norton's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.