Time To Worry? Analysts Are Downgrading Their Signatureglobal (India) Limited (NSE:SIGNATURE) Outlook

One thing we could say about the analysts on Signatureglobal (India) Limited (NSE:SIGNATURE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Signatureglobal (India)'s three analysts are now forecasting revenues of ₹53b in 2026. This would be a major 97% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 801% to ₹52.07. Previously, the analysts had been modelling revenues of ₹63b and earnings per share (EPS) of ₹66.30 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Signatureglobal (India)

Analysts made no major changes to their price target of ₹1,859, suggesting the downgrades are not expected to have a long-term impact on Signatureglobal (India)'s valuation.

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 Signatureglobal (India)'s rate of growth is expected to accelerate meaningfully, with the forecast 72% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 34% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Signatureglobal (India) to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Signatureglobal (India). While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected next year, we wouldn't be surprised if investors were a bit wary of Signatureglobal (India).

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Signatureglobal (India) going out to 2027, and you can see them 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.

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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.