IndiaMART InterMESH Limited Just Recorded A 33% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that IndiaMART InterMESH Limited (NSE:INDIAMART) filed its quarterly result this time last week. The early response was not positive, with shares down 8.0% to ₹1,791 in the past week. It looks like a credible result overall - although revenues of ₹4.1b were what the analysts expected, IndiaMART InterMESH surprised by delivering a (statutory) profit of ₹28.56 per share, an impressive 33% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for IndiaMART InterMESH from 15 analysts is for revenues of ₹17.2b in 2027. If met, it would imply a reasonable 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 12% to ₹92.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹17.3b and earnings per share (EPS) of ₹91.29 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for IndiaMART InterMESH

With no major changes to earnings forecasts, the consensus price target fell 9.5% to ₹2,095, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. There are some variant perceptions on IndiaMART InterMESH, with the most bullish analyst valuing it at ₹2,500 and the most bearish at ₹1,650 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.

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. We would highlight that IndiaMART InterMESH's revenue growth is expected to slow, with the forecast 9.3% annualised growth rate until the end of 2027 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% per year. Even after the forecast slowdown in growth, it seems obvious that IndiaMART InterMESH 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. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have forecasts for IndiaMART InterMESH going out to 2029, and you can see them free on our platform here.

You still need to take note of risks, for example - IndiaMART InterMESH has 2 warning signs we think you should be aware of.

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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.