Earnings Update: Here's Why Analysts Just Lifted Their eMudhra Limited (NSE:EMUDHRA) Price Target To ₹832

Shareholders might have noticed that eMudhra Limited (NSE:EMUDHRA) filed its full-year result this time last week. The early response was not positive, with shares down 3.5% to ₹738 in the past week. Revenues of ₹3.8b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹9.50, missing estimates by 2.1%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for eMudhra

Taking into account the latest results, the most recent consensus for eMudhra from single analyst is for revenues of ₹5.20b in 2025. If met, it would imply a substantial 37% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 62% to ₹14.70. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹5.23b and earnings per share (EPS) of ₹15.30 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 analyst did make a minor downgrade to their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 20% to ₹832, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the eMudhra's past performance and to peers in the same industry. The analyst is definitely expecting eMudhra's growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 24% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that eMudhra is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for eMudhra. 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 analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 3 warning signs for eMudhra (1 is potentially serious!) that you need to take into consideration.

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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.