SIS Limited (NSE:SIS) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for SIS Limited (NSE:SIS) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.9% to ₹402. Results look mixed - while revenue fell marginally short of analyst estimates at ₹33b, statutory earnings were in line with expectations, at ₹12.97 per share. 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.

View our latest analysis for SIS

Taking into account the latest results, the consensus forecast from SIS' four analysts is for revenues of ₹132.4b in 2025. This reflects a reasonable 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 64% to ₹18.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹132.9b and earnings per share (EPS) of ₹21.60 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at ₹497, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on SIS, with the most bullish analyst valuing it at ₹532 and the most bearish at ₹405 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of SIS'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 9.6% annual growth over the past five 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 SIS is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹497, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple SIS 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 - SIS has 2 warning signs 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.