Electronics Mart India Limited (NSE:EMIL) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for Electronics Mart India Limited (NSE:EMIL) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.4% to ₹106. Results were roughly in line with estimates, with revenues of ₹19b and statutory earnings per share of ₹4.16. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Electronics Mart India's seven analysts is for revenues of ₹84.0b in 2027. This would reflect a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 84% to ₹4.48. Before this earnings report, the analysts had been forecasting revenues of ₹84.6b and earnings per share (EPS) of ₹4.75 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 Electronics Mart India

The consensus price target held steady at ₹149, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Electronics Mart India analyst has a price target of ₹201 per share, while the most pessimistic values it at ₹122. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although Electronics Mart India is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹149, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Electronics Mart India going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Electronics Mart India (1 doesn't sit too well with us!) 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.