The Supreme Industries Limited (NSE:SUPREMEIND) shareholders are probably feeling a little disappointed, since its shares fell 9.1% to ₹3,229 in the week after its latest second-quarter results. Supreme Industries beat revenue expectations by 9.4%, at ₹34b. Statutory earnings per share (EPS) came in at ₹20.66, some 4.5% short of analyst estimates. 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 Supreme Industries after the latest results.
Taking into account the latest results, the consensus forecast from Supreme Industries' 27 analysts is for revenues of ₹137.0b in 2027. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.6% to ₹94.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹130.8b and earnings per share (EPS) of ₹92.22 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for Supreme Industries
Despite these upgrades,the analysts have not made any major changes to their price target of ₹3,907, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Supreme Industries analyst has a price target of ₹4,500 per share, while the most pessimistic values it at ₹3,000. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Supreme Industries shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Supreme Industries' past performance and to peers in the same industry. It's clear from the latest estimates that Supreme Industries' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Supreme Industries is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Supreme Industries' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹3,907, with the latest estimates not enough to have an impact on their price targets.
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 forecasts for Supreme Industries going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Supreme Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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