V-Guard Industries Limited (NSE:VGUARD) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Investors in V-Guard Industries Limited (NSE:VGUARD) had a good week, as its shares rose 6.4% to close at ₹437 following the release of its quarterly results. It looks like the results were a bit of a negative overall. While revenues of ₹13b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.0% to hit ₹1.44 per share. 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. 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

Following the latest results, V-Guard Industries' 16 analysts are now forecasting revenues of ₹56.0b in 2025. This would be an okay 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 17% to ₹8.00. In the lead-up to this report, the analysts had been modelling revenues of ₹56.5b and earnings per share (EPS) of ₹8.18 in 2025. 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹484, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values V-Guard Industries at ₹555 per share, while the most bearish prices it at ₹352. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that V-Guard Industries' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 17% 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 22% 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 plus side, there were no major changes to revenue estimates; although 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.

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.

We don't want to rain on the parade too much, but we did also find 1 warning sign for V-Guard Industries 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.