Analysts Have Made A Financial Statement On Suzlon Energy Limited's (NSE:SUZLON) First-Quarter Report

Shareholders might have noticed that Suzlon Energy Limited (NSE:SUZLON) filed its quarterly result this time last week. The early response was not positive, with shares down 9.5% to ₹47.40 in the past week. Results were roughly in line with estimates, with revenues of ₹38b and statutory earnings per share of ₹2.31. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Suzlon Energy's 14 analysts is for revenues of ₹219.0b in 2027. This would reflect a substantial 26% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 18% to ₹1.88 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹219.3b and earnings per share (EPS) of ₹2.02 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Suzlon Energy

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹62.87, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Suzlon Energy, with the most bullish analyst valuing it at ₹74.00 and the most bearish at ₹51.00 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. It's clear from the latest estimates that Suzlon Energy's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 27% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Suzlon Energy is expected to grow much faster than its industry.

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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Suzlon Energy going out to 2029, and you can see them free on our platform here.

You can also see our analysis of Suzlon Energy'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.