Symphony Limited Just Recorded A 32% Revenue Beat: Here's What Analysts Think

The investors in Symphony Limited's (NSE:SYMPHONY) will be rubbing their hands together with glee today, after the share price leapt 34% to ₹1,658 in the week following its quarterly results. Revenue of ₹5.3b beat expectations by an impressive 32%, while statutory earnings per share (EPS) were ₹21.43, in line with estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Symphony

Taking into account the latest results, the most recent consensus for Symphony from nine analysts is for revenues of ₹15.4b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.1% to ₹31.72. Before this earnings report, the analysts had been forecasting revenues of ₹13.9b and earnings per share (EPS) of ₹27.42 in 2025. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 30% to ₹1,396per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Symphony at ₹1,710 per share, while the most bearish prices it at ₹951. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Symphony's past performance and to peers in the same industry. It's clear from the latest estimates that Symphony's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Symphony is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Symphony following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Symphony will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Symphony analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Symphony that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.