Analysts Are More Bearish On MTAR Technologies Limited (NSE:MTARTECH) Than They Used To Be

Today is shaping up negative for MTAR Technologies Limited (NSE:MTARTECH) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for MTAR Technologies from its dual analysts is for revenues of ₹7.6b in 2025 which, if met, would be a substantial 29% increase on its sales over the past 12 months. Per-share earnings are expected to surge 60% to ₹29.10. Prior to this update, the analysts had been forecasting revenues of ₹9.2b and earnings per share (EPS) of ₹44.60 in 2025. Indeed, we can see that the analysts are a lot more bearish about MTAR Technologies' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for MTAR Technologies

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to ₹2,044.

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. We can infer from the latest estimates that forecasts expect a continuation of MTAR Technologies'historical trends, as the 29% annualised revenue growth to the end of 2025 is roughly in line with the 28% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that MTAR Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of MTAR Technologies.

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.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.