Earnings Report: Sirca Paints India Limited Missed Revenue Estimates By 12%
Investors in Sirca Paints India Limited (NSE:SIRCA) had a good week, as its shares rose 3.5% to close at ₹407 following the release of its first-quarter results. Revenues were ₹1.3b, 12% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹11.63 being in line with what the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the twin analysts covering Sirca Paints India are now predicting revenues of ₹6.21b in 2027. If met, this would reflect a huge 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to ₹14.10. Before this earnings report, the analysts had been forecasting revenues of ₹6.20b and earnings per share (EPS) of ₹14.35 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Sirca Paints India
With no major changes to earnings forecasts, the consensus price target fell 5.7% to ₹533, suggesting that the analysts might have previously been hoping for an earnings upgrade.
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. The analysts are definitely expecting Sirca Paints India's growth to accelerate, with the forecast 31% annualised growth to the end of 2027 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sirca Paints India to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sirca Paints India's future valuation.
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. 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 Sirca Paints India 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.