The quarterly results for eMudhra Limited (NSE:EMUDHRA) were released last week, making it a good time to revisit its performance. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.9b, statutory earnings were in line with expectations, at ₹13.02 per share. Following the result, the analyst has 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, the consensus forecast from eMudhra's one analyst is for revenues of ₹8.40b in 2027. This reflects a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 18% to ₹16.50. In the lead-up to this report, the analyst had been modelling revenues of ₹9.08b and earnings per share (EPS) of ₹19.20 in 2027. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.
See our latest analysis for eMudhra
The analyst made no major changes to their price target of ₹702, suggesting the downgrades are not expected to have a long-term impact on eMudhra's valuation.
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. We would highlight that eMudhra's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2027 being well below the historical 32% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that eMudhra is also 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 eMudhra. They also downgraded eMudhra's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹702, with the latest estimates not enough to have an impact on their price target.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2029, which can be seen for free on our platform here.
We also provide an overview of the eMudhra Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.