Mazagon Dock Shipbuilders Limited Just Beat Revenue By 31%: Here's What Analysts Think Will Happen Next

Investors in Mazagon Dock Shipbuilders Limited (NSE:MAZDOCK) had a good week, as its shares rose 4.3% to close at ₹4,257 following the release of its quarterly results. Revenue of ₹28b came in a notable 31% ahead of expectations, while statutory earnings of ₹96.04 were in line with what the analysts had been forecasting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Mazagon Dock Shipbuilders

Taking into account the latest results, the most recent consensus for Mazagon Dock Shipbuilders from two analysts is for revenues of ₹155.1b in 2025. If met, it would imply a substantial 47% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 41% to ₹180. Before this earnings report, the analysts had been forecasting revenues of ₹156.5b and earnings per share (EPS) of ₹119 in 2025. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 49% to ₹3,324.

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. It's clear from the latest estimates that Mazagon Dock Shipbuilders' rate of growth is expected to accelerate meaningfully, with the forecast 115% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. 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 takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mazagon Dock Shipbuilders' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Mazagon Dock Shipbuilders (of which 1 makes us a bit uncomfortable!) you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.