Nuvoco Vistas Corporation Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Investors in Nuvoco Vistas Corporation Limited (NSE:NUVOCO) had a good week, as its shares rose 8.5% to close at ₹361 following the release of its third-quarter results. Revenues of ₹24b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹0.87 an impressive 30% ahead of estimates. 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.

Check out our latest analysis for Nuvoco Vistas

Following the latest results, Nuvoco Vistas' 15 analysts are now forecasting revenues of ₹117.2b in 2025. This would be a decent 9.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 55% to ₹10.80. Before this earnings report, the analysts had been forecasting revenues of ₹122.5b and earnings per share (EPS) of ₹11.17 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹395 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Nuvoco Vistas at ₹440 per share, while the most bearish prices it at ₹335. 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 would highlight that Nuvoco Vistas' revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.7% 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 most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Nuvoco Vistas. Long-term earnings power is much more important than next year's profits. We have forecasts for Nuvoco Vistas going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Nuvoco Vistas (1 is potentially serious) you should be aware 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.