Bearish: Analysts Just Cut Their Sterling and Wilson Renewable Energy Limited (NSE:SWSOLAR) Revenue and EPS estimates

The latest analyst coverage could presage a bad day for Sterling and Wilson Renewable Energy Limited (NSE:SWSOLAR), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Sterling and Wilson Renewable Energy's three analysts is for revenues of ₹89b in 2026, which would reflect a major 79% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 1,422% to ₹17.93. Before this latest update, the analysts had been forecasting revenues of ₹110b and earnings per share (EPS) of ₹27.30 in 2026. Indeed, we can see that the analysts are a lot more bearish about Sterling and Wilson Renewable Energy's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Sterling and Wilson Renewable Energy

It'll come as no surprise then, to learn that the analysts have cut their price target 21% to ₹653.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Sterling and Wilson Renewable Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 59% annualised growth until the end of 2026. If achieved, this would be a much better result than the 16% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Sterling and Wilson Renewable Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Sterling and Wilson Renewable Energy going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.