CMS Info Systems Limited (NSE:CMSINFO) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a sad week for CMS Info Systems Limited (NSE:CMSINFO), who've watched their investment drop 14% to ₹500 in the week since the company reported its quarterly result. Results were roughly in line with estimates, with revenues of ₹6.2b and statutory earnings per share of ₹21.39. 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 CMS Info Systems

Taking into account the latest results, the current consensus from CMS Info Systems' six analysts is for revenues of ₹26.4b in 2025. This would reflect a solid 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 12% to ₹24.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹26.5b and earnings per share (EPS) of ₹25.56 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.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 13% to ₹613, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 CMS Info Systems analyst has a price target of ₹660 per share, while the most pessimistic values it at ₹520. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CMS Info Systems is an easy business to forecast or the the analysts are all using similar assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of CMS Info Systems'historical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although CMS Info Systems is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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 CMS Info Systems. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on CMS Info Systems. Long-term earnings power is much more important than next year's profits. We have forecasts for CMS Info Systems going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for CMS Info Systems that we have uncovered.

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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.