Sandhar Technologies Limited Beat Revenue Forecasts By 10%: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Sandhar Technologies Limited (NSE:SANDHAR) released its quarterly result to the market. The early response was not positive, with shares down 6.3% to ₹615 in the past week. Sandhar Technologies beat revenue forecasts by a solid 10% to hit ₹14b. Statutory earnings per share came in at ₹33.00, in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sandhar Technologies after the latest results.

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Taking into account the latest results, the most recent consensus for Sandhar Technologies from two analysts is for revenues of ₹56.3b in 2027. If met, it would imply a decent 9.6% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 11% to ₹30.60 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹55.5b and earnings per share (EPS) of ₹33.75 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 Sandhar Technologies

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹896, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 Sandhar Technologies' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2027 being well below the historical 17% p.a. growth over the last five years. Compare this to the 137 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. So it's pretty clear that, while Sandhar Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Sandhar Technologies. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.

You still need to take note of risks, for example - Sandhar Technologies 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.