Analysts Just Made A Major Revision To Their Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) Revenue Forecasts

Market forces rained on the parade of Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Investors however, have been notably more optimistic about Mazagon Dock Shipbuilders recently, with the stock price up a notable 13% to ₹4,522 in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.

After the downgrade, the three analysts covering Mazagon Dock Shipbuilders are now predicting revenues of ₹137b in 2025. If met, this would reflect a huge 29% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 5.4% to ₹134. Prior to this update, the analysts had been forecasting revenues of ₹155b and earnings per share (EPS) of ₹142 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for Mazagon Dock Shipbuilders

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Mazagon Dock Shipbuilders' rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mazagon Dock Shipbuilders is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Mazagon Dock Shipbuilders. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Mazagon Dock Shipbuilders after today.

Still, 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 Mazagon Dock Shipbuilders going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.