Analysts Just Slashed Their Innova Captab Limited (NSE:INNOVACAP) EPS Numbers

Market forces rained on the parade of Innova Captab Limited (NSE:INNOVACAP) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After this downgrade, Innova Captab's dual analysts are now forecasting revenues of ₹15b in 2026. This would be a meaningful 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 6.2% to ₹23.10. Previously, the analysts had been modelling revenues of ₹17b and earnings per share (EPS) of ₹30.25 in 2026. Indeed, we can see that the analysts are a lot more bearish about Innova Captab's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Innova Captab

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Innova Captab's growth to accelerate, with the forecast 25% annualised growth to the end of 2026 ranking favourably alongside historical growth of 15% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Innova Captab to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Innova Captab, and a few readers might choose to steer clear of the stock.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that Innova Captab could now be moderately overvalued. You can learn more about our valuation methodology for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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.