MTAR Technologies Limited Just Missed Revenue By 7.8%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that MTAR Technologies Limited (NSE:MTARTECH) released its quarterly result to the market. The early response was not positive, with shares down 4.8% to ₹1,739 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.3b, statutory earnings were in line with expectations, at ₹18.24 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for MTAR Technologies

Taking into account the latest results, the consensus forecast from MTAR Technologies' solitary analyst is for revenues of ₹7.60b in 2025. This reflects a sizeable 38% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 118% to ₹28.50. Before this earnings report, the analyst had been forecasting revenues of ₹7.31b and earnings per share (EPS) of ₹29.10 in 2025. Overall it looks as though the analyst was a bit mixed on the latest results. Although there was a a sizeable to revenue, the consensus also made a small dip in its earnings per share forecasts.

There's been no major changes to the price target of ₹1,793, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

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. The analyst is definitely expecting MTAR Technologies' growth to accelerate, with the forecast 53% annualised growth to the end of 2025 ranking favourably alongside historical growth of 31% per annum 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 MTAR Technologies is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MTAR Technologies. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for MTAR Technologies that 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.