Signatureglobal (India) Limited Just Reported A Surprise Profit And Analysts Updated Their Estimates

Signatureglobal (India) Limited (NSE:SIGNATURE) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. In addition to smashing expectations with revenues of ₹4.0b, Signatureglobal (India) delivered a surprise statutory profit of ₹0.48 per share, a notable improvement compared to analyst expectations of a loss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Signatureglobal (India)

After the latest results, the two analysts covering Signatureglobal (India) are now predicting revenues of ₹42.2b in 2025. If met, this would reflect a sizeable 183% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 1,647% to ₹37.50. In the lead-up to this report, the analysts had been modelling revenues of ₹42.5b and earnings per share (EPS) of ₹35.00 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 5.8% to ₹1,631, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Signatureglobal (India)'s growth to accelerate, with the forecast 3x annualised growth to the end of 2025 ranking favourably alongside historical growth of 27% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Signatureglobal (India) is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Signatureglobal (India)'s earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Signatureglobal (India) going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Signatureglobal (India) that you should be aware of.

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.