₹333: That's What Analysts Think Updater Services Limited (NSE:UDS) Is Worth After Its Latest Results

It's been a sad week for Updater Services Limited (NSE:UDS), who've watched their investment drop 15% to ₹201 in the week since the company reported its second-quarter result. Results were roughly in line with estimates, with revenues of ₹7.3b and statutory earnings per share of ₹17.70. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Updater Services' four analysts is for revenues of ₹29.8b in 2026. This would reflect a reasonable 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 3.2% to ₹16.45 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹30.1b and earnings per share (EPS) of ₹20.27 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

View our latest analysis for Updater Services

The average price target fell 11% to ₹333, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. Currently, the most bullish analyst values Updater Services at ₹440 per share, while the most bearish prices it at ₹230. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Updater Services' growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.9% per annum over the past year. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Updater Services is expected to grow at about the same rate as 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 Updater Services. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Updater Services' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Updater Services going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.