Hitachi Energy India Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Hitachi Energy India Limited (NSE:POWERINDIA) just kicked off its latest yearly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.5% to hit ₹52b. Hitachi Energy India also reported a statutory profit of ₹38.64, which was an impressive 37% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Hitachi Energy India

After the latest results, the seven analysts covering Hitachi Energy India are now predicting revenues of ₹66.1b in 2025. If met, this would reflect a substantial 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 120% to ₹84.93. Before this earnings report, the analysts had been forecasting revenues of ₹65.4b and earnings per share (EPS) of ₹81.10 in 2025. So the consensus seems to have become somewhat more optimistic on Hitachi Energy India's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 40% to ₹8,454. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hitachi Energy India analyst has a price target of ₹13,000 per share, while the most pessimistic values it at ₹4,200. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 Hitachi Energy India's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hitachi Energy India is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hitachi Energy India following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Hitachi Energy India going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Hitachi Energy India that you need to be mindful 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.