Here's What Analysts Are Forecasting For Nuvoco Vistas Corporation Limited (NSE:NUVOCO) After Its Interim Results

Nuvoco Vistas Corporation Limited (NSE:NUVOCO) missed earnings with its latest interim results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at ₹49b, but statutory earnings fell catastrophically short, with a loss of ₹2.38 some 54% larger than what the analysts had predicted. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nuvoco Vistas after the latest results.

Check out our latest analysis for Nuvoco Vistas

Taking into account the latest results, the consensus forecast from Nuvoco Vistas' 17 analysts is for revenues of ₹106.7b in 2025. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 155% to ₹3.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹109.4b and earnings per share (EPS) of ₹6.52 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹368 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. There are some variant perceptions on Nuvoco Vistas, with the most bullish analyst valuing it at ₹450 and the most bearish at ₹325 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Nuvoco Vistas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.1% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 4.3% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Nuvoco Vistas is still expected to grow faster 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 Nuvoco Vistas. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nuvoco Vistas going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Nuvoco Vistas (of which 1 doesn't sit too well with us!) you should know about.

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.