Revenue Miss: Grindwell Norton Limited Fell 5.4% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Grindwell Norton Limited (NSE:GRINDWELL) just released its latest quarterly report and things are not looking great. Grindwell Norton missed analyst forecasts, with revenues of ₹6.9b and statutory earnings per share (EPS) of ₹8.69, falling short by 5.4% and 3.4% respectively. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Grindwell Norton

After the latest results, the five analysts covering Grindwell Norton are now predicting revenues of ₹29.5b in 2025. If met, this would reflect a satisfactory 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.9% to ₹36.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹30.4b and earnings per share (EPS) of ₹39.15 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹2,435 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Grindwell Norton analyst has a price target of ₹2,746 per share, while the most pessimistic values it at ₹2,168. 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.

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 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹2,435, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Grindwell Norton. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Grindwell Norton going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Grindwell Norton has 1 warning sign we think you should be aware of.

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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.