The second-quarter results for Grindwell Norton Limited (NSE:GRINDWELL) were released last week, making it a good time to revisit its performance. Grindwell Norton reported ₹8.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹11.99 beat expectations, being 2.5% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the three analysts covering Grindwell Norton are now predicting revenues of ₹35.2b in 2027. If met, this would reflect a reasonable 7.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to ₹46.50. Before this earnings report, the analysts had been forecasting revenues of ₹35.1b and earnings per share (EPS) of ₹45.40 in 2027. So the consensus seems to have become somewhat more optimistic on Grindwell Norton's earnings potential following these results.
View our latest analysis for Grindwell Norton
There's been no major changes to the consensus price target of ₹2,213, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Grindwell Norton, with the most bullish analyst valuing it at ₹2,268 and the most bearish at ₹2,123 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Grindwell Norton is an easy business to forecast or the the analysts are all using similar assumptions.
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 Grindwell Norton's growth to accelerate, with the forecast 15% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Grindwell Norton is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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 Grindwell Norton following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
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 forecasts for Grindwell Norton going out to 2029, and you can see them free on our platform here.
We also provide an overview of the Grindwell Norton Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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