V-Guard Industries Limited Just Beat EPS By 21%: Here's What Analysts Think Will Happen Next

V-Guard Industries Limited (NSE:VGUARD) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of ₹15b, some 5.0% above estimates, and statutory earnings per share (EPS) coming in at ₹2.25, 21% ahead of expectations. Following the result, the analysts have 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for V-Guard Industries

Taking into account the latest results, the current consensus from V-Guard Industries' seven analysts is for revenues of ₹54.0b in 2025. This would reflect a credible 5.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 12% to ₹7.50. In the lead-up to this report, the analysts had been modelling revenues of ₹55.8b and earnings per share (EPS) of ₹7.90 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of ₹424, suggesting the downgrades are not expected to have a long-term impact on V-Guard Industries' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic V-Guard Industries analyst has a price target of ₹530 per share, while the most pessimistic values it at ₹259. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 would highlight that V-Guard Industries' revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it seems obvious that V-Guard Industries is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for V-Guard Industries. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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. We have estimates - from multiple V-Guard Industries analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - V-Guard Industries has 1 warning sign we think 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com