Sundram Fasteners Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest quarterly earnings release from Sundram Fasteners Limited (NSE:SUNDRMFAST), an important milestone in the company's journey to build a stronger business. Revenues of ₹20b beat forecasts by 11%, although statutory earnings per share disappointed slightly, coming in 5.7% below expectations at ₹8.20. 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. 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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After the latest results, the three analysts covering Sundram Fasteners are now predicting revenues of ₹77.5b in 2027. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to ₹33.90. Before this earnings report, the analysts had been forecasting revenues of ₹73.0b and earnings per share (EPS) of ₹33.90 in 2027. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

See our latest analysis for Sundram Fasteners

It may not be a surprise to see thatthe analysts have reconfirmed their price target of ₹1,336, implying that the uplift in revenue is not expected to greatly contribute to Sundram Fasteners's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sundram Fasteners at ₹1,491 per share, while the most bearish prices it at ₹1,180. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sundram Fasteners' growth to accelerate, with the forecast 21% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sundram Fasteners is expected to grow much faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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 Sundram Fasteners going out to 2029, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sundram Fasteners .

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