A week ago, Sterlite Technologies Limited (NSE:STLTECH) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at ₹25b, while EPS were ₹9.36 beating analyst models by 99%. 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.
Following the latest results, Sterlite Technologies' three analysts are now forecasting revenues of ₹101.4b in 2027. This would be a substantial 42% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 77% to ₹26.09. Before this earnings report, the analysts had been forecasting revenues of ₹93.7b and earnings per share (EPS) of ₹21.45 in 2027. So it seems there's been a definite increase in optimism about Sterlite Technologies' future following the latest results, with a great increase in the earnings per share forecasts in particular.
View our latest analysis for Sterlite Technologies
With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.9% to ₹1,473per share. 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 Sterlite Technologies at ₹1,606 per share, while the most bearish prices it at ₹1,347. 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. One thing stands out from these estimates, which is that Sterlite Technologies is forecast to grow faster in the future than it has in the past, with revenues expected to display 102% annualised growth until the end of 2027. If achieved, this would be a much better result than the 4.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 37% annually. Not only are Sterlite Technologies' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sterlite Technologies following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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 in mind, we wouldn't be too quick to come to a conclusion on Sterlite Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sterlite Technologies going out to 2029, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Sterlite Technologies you should know about.
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