Newsflash: Syrma SGS Technology Limited (NSE:SYRMA) Analysts Have Been Trimming Their Revenue Forecasts

The analysts covering Syrma SGS Technology Limited (NSE:SYRMA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Bidders are definitely seeing a different story, with the stock price of ₹530 reflecting a 11% rise in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

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After the downgrade, the 19 analysts covering Syrma SGS Technology are now predicting revenues of ₹50b in 2026. If met, this would reflect a substantial 24% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 61% to ₹12.60. Before this latest update, the analysts had been forecasting revenues of ₹57b and earnings per share (EPS) of ₹12.66 in 2026. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a measurable cut to revenues and some minor tweaks to earnings numbers.

View our latest analysis for Syrma SGS Technology

The average price target was steady at ₹607 even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Syrma SGS Technology's revenue growth is expected to slow, with the forecast 24% annualised growth rate until the end of 2026 being well below the historical 45% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 20% annually. Factoring in the forecast slowdown in growth, it looks like Syrma SGS Technology is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Syrma SGS Technology going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Syrma SGS Technology analysts - going out to 2028, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.