TVS Supply Chain Solutions Limited Just Missed EPS By 89%: Here's What Analysts Think Will Happen Next

Last week saw the newest annual earnings release from TVS Supply Chain Solutions Limited (NSE:TVSSCS), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at ₹0.10, some 89% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹93b. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for TVS Supply Chain Solutions

Taking into account the latest results, the current consensus from TVS Supply Chain Solutions' twin analysts is for revenues of ₹106.6b in 2025. This would reflect a decent 15% increase on its revenue over the past 12 months. Earnings are expected to improve, with TVS Supply Chain Solutions forecast to report a statutory profit of ₹2.90 per share. Before this earnings report, the analysts had been forecasting revenues of ₹107.7b and earnings per share (EPS) of ₹3.05 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at ₹248, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TVS Supply Chain Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TVS Supply Chain Solutions to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TVS Supply Chain Solutions. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also view our analysis of TVS Supply Chain Solutions' balance sheet, and whether we think TVS Supply Chain Solutions is carrying too much debt, for free on our platform here.

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

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.