Results: The Supreme Industries Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

The Supreme Industries Limited (NSE:SUPREMEIND) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹27b, statutory earnings beat expectations by a notable 19%, coming in at ₹22.10 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Supreme Industries' 28 analysts is for revenues of ₹128.6b in 2027. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to ₹91.25. In the lead-up to this report, the analysts had been modelling revenues of ₹127.9b and earnings per share (EPS) of ₹90.20 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Supreme Industries

There were no changes to revenue or earnings estimates or the price target of ₹3,960, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Supreme Industries at ₹4,661 per share, while the most bearish prices it at ₹3,150. 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 Supreme Industries shareholders.

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 Supreme Industries' rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Supreme Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹3,960, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Supreme Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Supreme Industries going out to 2029, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Supreme Industries that we have uncovered.

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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.