Shivalik Bimetal Controls Limited (NSE:SBCL) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Shivalik Bimetal Controls Limited (NSE:SBCL) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.4b, statutory earnings were in line with expectations, at ₹3.96 per share. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Shivalik Bimetal Controls' single analyst is for revenues of ₹5.82b in 2026. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 22% to ₹17.30. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹5.99b and earnings per share (EPS) of ₹18.00 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

See our latest analysis for Shivalik Bimetal Controls

Despite the cuts to forecast earnings, there was no real change to the ₹734 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shivalik Bimetal Controls' past performance and to peers in the same industry. We would highlight that Shivalik Bimetal Controls' revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. So it's pretty clear that, while Shivalik Bimetal Controls' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shivalik Bimetal Controls. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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 analyst estimates for Shivalik Bimetal Controls going out as far as 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Shivalik Bimetal Controls that 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.