MTAR Technologies Limited (NSE:MTARTECH) Just Reported, And Analysts Assigned A ₹1,688 Price Target

Shareholders of MTAR Technologies Limited (NSE:MTARTECH) will be pleased this week, given that the stock price is up 11% to ₹1,676 following its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.9b, statutory earnings were in line with expectations, at ₹18.24 per share. 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.

View our latest analysis for MTAR Technologies

Taking into account the latest results, the most recent consensus for MTAR Technologies from twin analysts is for revenues of ₹7.35b in 2025. If met, it would imply a sizeable 27% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 116% to ₹27.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹7.62b and earnings per share (EPS) of ₹29.70 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.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.9% to ₹1,688.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that MTAR Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 61% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 26% 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 MTAR Technologies is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MTAR Technologies. They also downgraded MTAR Technologies' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of MTAR Technologies' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on MTAR Technologies. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that MTAR Technologies is showing 1 warning sign in our investment analysis , you should know about...

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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.