Syrma SGS Technology Limited (NSE:SYRMA) Just Beat EPS By 11%: Here's What Analysts Are Forecasting For This Year

As you might know, Syrma SGS Technology Limited (NSE:SYRMA) just kicked off its latest annual results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 9.6% to hit ₹21b. Syrma SGS Technology reported statutory earnings per share (EPS) ₹7.50, which was a notable 11% above what the analysts had forecast. 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. 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.

See our latest analysis for Syrma SGS Technology

Following the latest results, Syrma SGS Technology's five analysts are now forecasting revenues of ₹27.8b in 2024. This would be a major 33% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 47% to ₹9.90. Before this earnings report, the analysts had been forecasting revenues of ₹26.0b and earnings per share (EPS) of ₹9.78 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

The consensus price target increased 7.4% to ₹387, with an improved revenue forecast carrying the promise of a more valuable business, in time. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Syrma SGS Technology analyst has a price target of ₹440 per share, while the most pessimistic values it at ₹325. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 2024 expected to display 33% growth on an annualised basis. This is compared to a historical growth rate of 105% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% annually. Even after the forecast slowdown in growth, it seems obvious that Syrma SGS Technology is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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 in mind, we wouldn't be too quick to come to a conclusion on Syrma SGS Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Syrma SGS Technology going out to 2025, and you can see them free on our platform here..

It might also be worth considering whether Syrma SGS Technology's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.