Grindwell Norton Limited (NSE:GRINDWELL) Just Released Its Annual Results And Analysts Are Updating Their Estimates

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. Results were roughly in line with estimates, with revenues of ₹29b and statutory earnings per share of ₹33.30. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Grindwell Norton's four analysts is for revenues of ₹31.0b in 2026. This reflects a reasonable 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to ₹39.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹32.1b and earnings per share (EPS) of ₹39.61 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

Check out our latest analysis for Grindwell Norton

The average price target was steady at ₹1,898even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Grindwell Norton, with the most bullish analyst valuing it at ₹2,126 and the most bearish at ₹1,692 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Grindwell Norton is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Grindwell Norton's revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Grindwell Norton.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹1,898, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Grindwell Norton going out to 2028, 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.