Syrma SGS Technology Limited Beat Revenue Forecasts By 16%: Here's What Analysts Are Forecasting Next

It's been a good week for Syrma SGS Technology Limited (NSE:SYRMA) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.1% to ₹1,367. It was a mildly positive result, with revenues exceeding expectations at ₹16b, while statutory earnings per share (EPS) of ₹16.92 were in line with analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Syrma SGS Technology's 22 analysts is for revenues of ₹67.1b in 2027. This reflects a major 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 19% to ₹22.67. Before this earnings report, the analysts had been forecasting revenues of ₹64.4b and earnings per share (EPS) of ₹21.21 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for Syrma SGS Technology

It will come as no surprise to learn that the analysts have increased their price target for Syrma SGS Technology 16% to ₹1,457on the back of these upgrades. 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. There are some variant perceptions on Syrma SGS Technology, with the most bullish analyst valuing it at ₹1,770 and the most bearish at ₹940 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Syrma SGS Technology's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 23% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Syrma SGS Technology is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Syrma SGS Technology's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Syrma SGS Technology going out to 2029, and you can see them free on our platform here.

You can also see our analysis of Syrma SGS Technology's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.