Harsha Engineers International Limited Just Recorded A 7.4% Revenue Beat: Here's What Analysts Think

Harsha Engineers International Limited (NSE:HARSHA) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to ₹405 in the week after its latest first-quarter results. Results overall were respectable, with statutory earnings of ₹4.11 per share roughly in line with what the analysts had forecast. Revenues of ₹4.6b came in 7.4% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Harsha Engineers International after the latest results.

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Following the latest results, Harsha Engineers International's four analysts are now forecasting revenues of ₹18.7b in 2027. This would be a meaningful 8.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to ₹19.45. Before this earnings report, the analysts had been forecasting revenues of ₹18.6b and earnings per share (EPS) of ₹19.05 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Harsha Engineers International

The consensus price target rose 6.9% to ₹518, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Harsha Engineers International, with the most bullish analyst valuing it at ₹587 and the most bearish at ₹462 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Harsha Engineers International is an easy business to forecast or the the analysts are all using similar assumptions.

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 Harsha Engineers International's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 7.4% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Harsha Engineers International is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Harsha Engineers International's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Harsha Engineers International going out to 2029, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Harsha Engineers International that 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.