It's been a good week for Tilaknagar Industries Ltd. (NSE:TI) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.4% to ₹465. Tilaknagar Industries reported in line with analyst predictions, delivering revenues of ₹10b and statutory earnings per share of ₹0.96, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the four analysts covering Tilaknagar Industries are now predicting revenues of ₹45.4b in 2027. If met, this would reflect a huge 51% improvement in revenue compared to the last 12 months. Statutory losses are forecast to narrow 8.2% to ₹1.58 per share. Before this earnings report, the analysts had been forecasting revenues of ₹44.7b and earnings per share (EPS) of ₹15.98 in 2027. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
Check out our latest analysis for Tilaknagar Industries
As a result, there was no major change to the consensus price target of ₹545, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. Currently, the most bullish analyst values Tilaknagar Industries at ₹563 per share, while the most bearish prices it at ₹520. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. The analysts are definitely expecting Tilaknagar Industries' growth to accelerate, with the forecast 74% annualised growth to the end of 2027 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tilaknagar Industries to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting Tilaknagar Industries to become unprofitable next year. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Tilaknagar Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Tilaknagar Industries going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Tilaknagar Industries that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.