Analysts Are Updating Their Symphony Limited (NSE:SYMPHONY) Estimates After Its Second-Quarter Results

Investors in Symphony Limited (NSE:SYMPHONY) had a good week, as its shares rose 3.5% to close at ₹503 following the release of its second-quarter results. Revenues were ₹2.8b, and Symphony came in a solid 20% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the most recent consensus for Symphony from six analysts is for revenues of ₹13.3b in 2027. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Symphony is also expected to turn profitable, with statutory earnings of ₹18.95 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹13.1b and earnings per share (EPS) of ₹21.16 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

See our latest analysis for Symphony

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹791, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Symphony at ₹849 per share, while the most bearish prices it at ₹638. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Symphony's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Symphony 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. At Simply Wall St, we have a full range of analyst estimates for Symphony 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 Symphony that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.