Earnings Update: Here's Why Analysts Just Lifted Their Usha Martin Limited (NSE:USHAMART) Price Target To ₹541

It's been a good week for Usha Martin Limited (NSE:USHAMART) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.0% to ₹342. Revenues came in 3.7% below expectations, at ₹8.6b. Statutory earnings per share were relatively better off, with a per-share profit of ₹13.92 being roughly in line with analyst estimates. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Usha Martin

Following the latest results, Usha Martin's solitary analyst are now forecasting revenues of ₹40.8b in 2026. This would be a decent 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 37% to ₹18.60. In the lead-up to this report, the analyst had been modelling revenues of ₹42.2b and earnings per share (EPS) of ₹21.40 in 2026. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The average price target climbed 24% to ₹541despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Usha Martin's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Usha Martin is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 Usha Martin going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Usha Martin is showing 2 warning signs in our investment analysis , you should know about...

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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.