Uno Minda Limited (NSE:UNOMINDA) just released its latest second-quarter results and things are looking bullish. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 10% higher than the analysts had forecast, at ₹67b, while EPS of ₹7.26 beat analyst models by 18%. 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 Uno Minda after the latest results.
Taking into account the latest results, the consensus forecast from Uno Minda's 18 analysts is for revenues of ₹250.2b in 2027. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 14% to ₹25.94. In the lead-up to this report, the analysts had been modelling revenues of ₹236.0b and earnings per share (EPS) of ₹24.54 in 2027. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Uno Minda
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.4% to ₹1,393per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Uno Minda at ₹1,692 per share, while the most bearish prices it at ₹1,095. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Uno Minda is expected to maintain its revenue growth rate, it's definitely expected 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 Uno Minda following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 estimates - from multiple Uno Minda analysts - going out to 2029, and you can see them free on our platform here.
You can also see whether Uno Minda is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.