Earnings Update: Cyient DLM Limited (NSE:CYIENTDLM) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Cyient DLM Limited (NSE:CYIENTDLM) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to ₹637 in the week after its latest quarterly results. Cyient DLM reported in line with analyst predictions, delivering revenues of ₹3.9b and statutory earnings per share of ₹8.39, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Cyient DLM

Taking into account the latest results, the consensus forecast from Cyient DLM's five analysts is for revenues of ₹16.5b in 2025. This reflects a sizeable 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 50% to ₹12.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹16.1b and earnings per share (EPS) of ₹13.28 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a sizeable to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at ₹845, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Cyient DLM analyst has a price target of ₹962 per share, while the most pessimistic values it at ₹620. 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. The analysts are definitely expecting Cyient DLM's growth to accelerate, with the forecast 53% annualised growth to the end of 2025 ranking favourably alongside historical growth of 33% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cyient DLM is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹845, with the latest estimates not enough to have an impact on their price targets.

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 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.

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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.