It’s been a good week for Sandhar Technologies Limited (NSE:SANDHAR) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to ₹473. It was a workmanlike result, with revenues of ₹8.8b coming in 3.6% ahead of expectations, and statutory earnings per share of ₹12.22, in line with analyst appraisals. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sandhar Technologies after the latest results.
Check out our latest analysis for Sandhar Technologies
Following the latest results, Sandhar Technologies’ twin analysts are now forecasting revenues of ₹35.0b in 2024. This would be a credible 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 25% to ₹20.40. In the lead-up to this report, the analysts had been modelling revenues of ₹34.8b and earnings per share (EPS) of ₹20.70 in 2024. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of ₹498, showing that the business is executing well and in line with expectations.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s pretty clear that there is an expectation that Sandhar Technologies’ revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Sandhar Technologies is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 ₹498, 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 analyst estimates for Sandhar Technologies going out as far as 2026, and you can see them free on our platform here.
That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 2 warning signs with Sandhar Technologies , and understanding these should be part of your investment process.
Valuation is complex, but we’re helping make it simple.
Find out whether Sandhar Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
