Syrma SGS Technology Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a mediocre week for Syrma SGS Technology Limited (NSE:SYRMA) shareholders, with the stock dropping 16% to ₹416 in the week since its latest first-quarter results. Revenue came in at ₹12b, beating expectations by a remarkable 21%, while statutory earnings per share (EPS) were ₹1.03, missing estimates by an equally remarkable 46%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Syrma SGS Technology after the latest results.

View our latest analysis for Syrma SGS Technology

Following the latest results, Syrma SGS Technology's 20 analysts are now forecasting revenues of ₹45.5b in 2025. This would be a substantial 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 54% to ₹8.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹44.4b and earnings per share (EPS) of ₹8.94 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a substantial to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at ₹503, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. The most optimistic Syrma SGS Technology analyst has a price target of ₹630 per share, while the most pessimistic values it at ₹395. 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 Syrma SGS Technology shareholders.

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 pretty clear that there is an expectation that Syrma SGS Technology's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 31% growth on an annualised basis. This is compared to a historical growth rate of 64% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 23% annually. So it's pretty clear that, while Syrma SGS Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Syrma SGS Technology going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Syrma SGS Technology you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com