Stock Analysis

Cyient DLM Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

NSEI:CYIENTDLM
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Cyient DLM Limited (NSE:CYIENTDLM) just released its annual report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.0% to hit ₹12b. Cyient DLM reported statutory earnings per share (EPS) ₹8.39, which was a notable 16% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cyient DLM after the latest results.

Check out our latest analysis for Cyient DLM

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NSEI:CYIENTDLM Earnings and Revenue Growth April 26th 2024

Taking into account the latest results, the consensus forecast from Cyient DLM's five analysts is for revenues of ₹16.0b in 2025. This reflects a major 31% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 84% to ₹14.18. Before this earnings report, the analysts had been forecasting revenues of ₹16.7b and earnings per share (EPS) of ₹13.88 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been no real change to the average price target of ₹805, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Cyient DLM at ₹925 per share, while the most bearish prices it at ₹570. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cyient DLM shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Cyient DLM's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 17% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cyient DLM to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cyient DLM's earnings potential next year. They also downgraded Cyient DLM's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹805, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Cyient DLM going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Cyient DLM that you should be aware of.

Valuation is complex, but we're helping make it simple.

Find out whether Cyient DLM is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.