Last week saw the newest quarterly earnings release from Midwest Limited (NSE:MIDWESTLTD), an important milestone in the company’s journey to build a stronger business. Revenues came in 6.8% below expectations, at ₹1.8b. Statutory earnings per share were relatively better off, with a per-share profit of ₹29.45 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company’s performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we’ve gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Taking into account the latest results, the current consensus from Midwest’s sole analyst is for revenues of ₹8.42b in 2027. This would reflect a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 24% to ₹39.10. Before this earnings report, the analyst had been forecasting revenues of ₹8.88b and earnings per share (EPS) of ₹42.00 in 2027. It’s pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
See our latest analysis for Midwest
It’ll come as no surprise then, to learn that the analyst has cut their price target 12% to ₹1,150.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Midwest’s past performance and to peers in the same industry. The analyst is definitely expecting Midwest’s growth to accelerate, with the forecast 35% annualised growth to the end of 2027 ranking favourably alongside historical growth of 12% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.5% per year. It seems obvious that as part of the brighter growth outlook, Midwest is expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Midwest. Unfortunately, they also downgraded their revenue estimates, and our data indicates that is expected to perform better than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 analyst estimates for Midwest going out as far as 2028, and you can see them free on our platform here.
You can also see whether Midwest is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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