Maharashtra Seamless Limited Just Recorded A 11% Revenue Beat: Here's What Analysts Think

Investors in Maharashtra Seamless Limited (NSE:MAHSEAMLES) had a good week, as its shares rose 6.4% to close at ₹736 following the release of its second-quarter results. Maharashtra Seamless beat revenue forecasts by a solid 11% to hit ₹15b. Statutory earnings per share came in at ₹57.07, in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Maharashtra Seamless

Taking into account the latest results, the current consensus from Maharashtra Seamless' single analyst is for revenues of ₹59.0b in 2024. This would reflect a satisfactory 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 7.6% to ₹63.50 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹56.2b and earnings per share (EPS) of ₹57.50 in 2024. So it seems there's been a definite increase in optimism about Maharashtra Seamless' future following the latest results, with a solid gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for Maharashtra Seamless 51% to ₹845on the back of these upgrades.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Maharashtra Seamless' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% annually. So it's pretty clear that, while Maharashtra Seamless' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Maharashtra Seamless' earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Maharashtra Seamless will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst 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 analyst estimates for Maharashtra Seamless going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Maharashtra Seamless that you need to be mindful 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.