Grindwell Norton Limited Just Missed Earnings - But Analysts Have Updated Their Models

Grindwell Norton Limited (NSE:GRINDWELL) shareholders are probably feeling a little disappointed, since its shares fell 6.7% to ₹2,249 in the week after its latest third-quarter results. Revenues of ₹6.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹8.32, missing estimates by 5.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Grindwell Norton

Taking into account the latest results, the consensus forecast from Grindwell Norton's seven analysts is for revenues of ₹32.7b in 2025. This reflects a sizeable 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 26% to ₹44.38. In the lead-up to this report, the analysts had been modelling revenues of ₹32.9b and earnings per share (EPS) of ₹44.67 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 ₹2,252, suggesting that the company has met expectations in its recent result. 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. The most optimistic Grindwell Norton analyst has a price target of ₹2,599 per share, while the most pessimistic values it at ₹2,126. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's clear from the latest estimates that Grindwell Norton's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% 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 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Grindwell Norton is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Grindwell Norton going out to 2026, 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.