Stock Analysis

Revenue Beat: Triveni Engineering & Industries Limited Beat Analyst Estimates By 11%

NSEI:TRIVENI
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Triveni Engineering & Industries Limited (NSE:TRIVENI) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a mildly positive result, with revenues exceeding expectations at ₹15b, while statutory earnings per share (EPS) of ₹17.89 were in line with analyst forecasts. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Triveni Engineering & Industries

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NSEI:TRIVENI Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the most recent consensus for Triveni Engineering & Industries from four analysts is for revenues of ₹56.3b in 2025. If met, it would imply a reasonable 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 19% to ₹16.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹58.7b and earnings per share (EPS) of ₹20.93 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹464 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Triveni Engineering & Industries at ₹501 per share, while the most bearish prices it at ₹370. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Triveni Engineering & Industries'historical trends, as the 6.4% annualised revenue growth to the end of 2025 is roughly in line with the 6.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 11% annually. So although Triveni Engineering & Industries is expected to maintain its revenue growth rate, it's forecast to grow slower than 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 Triveni Engineering & Industries. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹464, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Triveni Engineering & Industries going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Triveni Engineering & Industries .

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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.