Analysts Have Made A Financial Statement On Tata Technologies Limited's (NSE:TATATECH) Annual Report

As you might know, Tata Technologies Limited (NSE:TATATECH) recently reported its annual numbers. It was a pretty mixed result, with revenues beating expectations to hit ₹52b. Statutory earnings fell 3.1% short of analyst forecasts, reaching ₹16.72 per share. Following the result, the analysts have 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Tata Technologies

Taking into account the latest results, the consensus forecast from Tata Technologies' eight analysts is for revenues of ₹58.2b in 2025. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 19% to ₹20.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹58.8b and earnings per share (EPS) of ₹20.29 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹966. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Tata Technologies, with the most bullish analyst valuing it at ₹1,370 and the most bearish at ₹700 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tata Technologies' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.4% annually. So it's pretty clear that, while Tata Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at ₹966, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tata Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Tata Technologies going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Tata Technologies has 2 warning signs (and 1 which is significant) we think you should know about.

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