Earnings Beat: Here's What Saregama India Limited (NSE:SAREGAMA) Analysts Are Forecasting For This Year
Saregama India Limited (NSE:SAREGAMA) just released its second-quarter report and things are looking bullish. Saregama India delivered a significant beat with revenue hitting ₹3.1b and statutory EPS reaching ₹3.36, both beating estimates by more than 10%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the four analysts covering Saregama India are now predicting revenues of ₹11.9b in 2027. If met, this would reflect a reasonable 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.9% to ₹13.40. Before this earnings report, the analysts had been forecasting revenues of ₹11.9b and earnings per share (EPS) of ₹13.08 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Saregama India
The consensus price target rose 24% to ₹633, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Saregama India analyst has a price target of ₹654 per share, while the most pessimistic values it at ₹569. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Saregama India'shistorical trends, as the 16% annualised revenue growth to the end of 2027 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Saregama India is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Saregama India'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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Saregama India analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Saregama India that you need to take into consideration.
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