V-Guard Industries Limited Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that V-Guard Industries Limited (NSE:VGUARD) released its quarterly result to the market. The early response was not positive, with shares down 2.7% to ₹364 in the past week. Revenues were in line with forecasts, at ₹13b, although statutory earnings per share came in 10% below what the analysts expected, at ₹1.37 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on V-Guard Industries after the latest results.

See our latest analysis for V-Guard Industries

Taking into account the latest results, the consensus forecast from V-Guard Industries' 17 analysts is for revenues of ₹63.6b in 2026. This reflects a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to ₹9.39. Before this earnings report, the analysts had been forecasting revenues of ₹64.4b and earnings per share (EPS) of ₹9.95 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The average price target fell 6.4% to ₹448, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic V-Guard Industries analyst has a price target of ₹568 per share, while the most pessimistic values it at ₹346. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the V-Guard Industries' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 21% annually. So although V-Guard Industries is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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 plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple V-Guard Industries analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for V-Guard Industries you should know about.

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

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.