₹1,574: That's What Analysts Think TBO Tek Limited (NSE:TBOTEK) Is Worth After Its Latest Results

It's been a good week for TBO Tek Limited (NSE:TBOTEK) shareholders, because the company has just released its latest full-year results, and the shares gained 6.7% to ₹1,321. Results overall were respectable, with statutory earnings of ₹21.48 per share roughly in line with what the analysts had forecast. Revenues of ₹18b came in 3.0% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in TBO Tek. Read for free now.

Taking into account the latest results, the most recent consensus for TBO Tek from eight analysts is for revenues of ₹20.7b in 2026. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 21% to ₹26.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹21.5b and earnings per share (EPS) of ₹29.21 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

See our latest analysis for TBO Tek

It'll come as no surprise then, to learn that the analysts have cut their price target 9.3% to ₹1,574. 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. The most optimistic TBO Tek analyst has a price target of ₹2,070 per share, while the most pessimistic values it at ₹1,380. 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.

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. It's pretty clear that there is an expectation that TBO Tek's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. Factoring in the forecast slowdown in growth, it seems obvious that TBO Tek is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TBO Tek. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TBO Tek's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for TBO Tek going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for TBO Tek 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.